Good morning. The rotation we saw Friday out of momentum and AI infrastructure names continued yesterday. While that took Tech and parts of the Industrial sectors lower, the rest of the equity market performed relatvively well as the S&P equal-weight rose 0.6%. A late day rally off a Trump social post managed to push the S&P 500 well off its lows to close down slightly (LOD 7353, Close 7403). The Russell 2000 lagged, falling 0.7%.

S&P futures have drifted lower overnight, currently down 0.3% despite oil trading lower as yields continue to rise. AI ecosystem weakness is continuing as those stocks make up many of the pre-market laggards, while software names litter the leaderboard. Treasury yields are moving higher again up 3-5bp across the curve, with similar movements seen globally. The 10y is once again above 4.60% and 30y moving closer to 5.20%. The US Dollar Index is up marginally, now back above 99.

Brent crude is lower on the latest bout of hope for a breakthrough in the Iran conflict. Precious metals are also lower despite crude’s decline, and ag is flat to higher. Crypto is modestly lower. Iran is reportedly planning to enter the shipping insurance space, developing a program to offer coverage for cargos transiting the Strait, paid in Bitcoin.