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May 5, 2026 at 9:00 a.m. EST
Happy Cinco De Mayo,
Yesterday, the durability of the ceasefire was in drawn into question following a strike against the UAE. One thing that was never in question was a Game 1 victory for the New York Knicks who won by 39pts. US equity markets moved modestly lower as oil prices and Treasury yields tested recent highs.
The rally in futures this morning is mostly about what didn’t happen as there was no escalation or response by the US. Futures pushed to session highs this morning as General Caine said the Iran attacks were below the threshold of restarting major combat operations something echoed by Secretary of War Hegseth. S&P futures are up 0.5% recouping pretty much all of yesterday’s losses while the R2K is up >0.75%. Oil prices are down >2% and which is also helping yields pull back a couple of bps.
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