Yesterday US equities extended recent gains with the S&P 500 closing up 1% for the second day, missing the record closing high by about 11 points. Today the S&P opened up 0.2% and moved higher throughout the day before breaking above 7000 and then hitting a new intraday record high. The other major indexes opened flat and are trading there or slightly lower. The Dow Transports is underperforming, with Avis dropping 10% after an almost 200% gain since the beginning of April. Some of the thematic/retail groups that saw strength yesterday are seeing follow-through today, including Quantum computing as many names climb over 10%.

Much of the S&P’s outperformance has come from strength in mega cap tech and a continued recovery by the software group. The NYSE 100 index is up 1% (looking to make it 11 in a row) and the IGV software ETF is up ~5%, while the semis are lower. Comm Services is among the leaders with Meta and Amazon up modestly but also seeing strength in media/advertising. Consumer Discretionary is outperforming Staples. ). Industrials and Materials are the primary laggards, with broad weakness in both sectors.

Oil prices are modestly higher with ICE Brent hovering ~$95. Iran announced the suspension of all petrochemical products until further notice, while the US blockade continues. The EIA report showed a slight inventory draw this morning, as opposed to last night’s build from the API data. Precious metals are mostly higher except for gold which is stalling out just below its 50d ma while silver is trying to hold above it after clearing that level yesterday. Ag is higher with corn leading on weather and soil condition updates. Crytpo is mixed with Bitcoin modestly lower and Ether higher.