Now THAT is how you buy the dip. Good morning everyone, and especially OG Anunoby,

US futures are rallying this morning but its not even close to the rally we watched from the NY Knicks last night. We’ve witnessed crazy swings here on the trading floor but what we saw last night was on another level. Before the game, however we had to take care of some trading yesterday. The S&P 500 fell over 1.5%. The rotation away from tech (and AI-adjacent) continued, and we didn’t see other sectors step up and buffer the downside. The defensive Staples along with Energy were the only sectors higher. A better-than-feared CPI print remained still-elevated, as rates ended slightly higher. Oil also ended higher.

Equity futures rose throughout the overnight session like the Knick’s clawing back in last night’s game. We were near session highs despite the US and Iran once again exchanging fire overnight. President Trump then took to social media right before today’s data releases to say the US “will be hitting Iran…taking Karg Island and other oil infrastructure….and assume total control of their Oil and Gas Markets.” Futures came off their highs, yields and oil rose. ORCL (-9%) is trading lowering in the pre-market after reporting last night.

Headline PPI was higher than expected though the prior month was revised lower. It was the highest reading since November 2022. Core was lower than expected and prior also revised lower. Futures rose a bit after the data and yields continued to move up but have begun to retreat back towards prior levels. Commodities are mixed. Crypto is seeing a bounce. Crude was lower but moved up to around unchanged following Trump’s comments.