Good morning,

The countdown is to tipoff is on! The Knicks have been on an amazing run winning 11 straight games heading into the NBA finals. Speaking of amazing runs, coming into today’s session the S&P 500 is riding a nine-day and nine-week winning streak. Yesterday’s gains in the index were modest gaining only ~0.1% but closing above 7,600 for the first time. Small and midcap indices outperformed ending up closer to 1% after underperforming in the prior session. Tech was mixed with semiconductors and other AI hardware/infrastructure stocks trading well after the Alphabet capital raise though software was under pressure giving back much of the previous sessions gains after AI pope Jensen blessed the sector. The other big story during the day were the sharp declines across the crypto complex with Bitcoin breaking below 70k as sentiment continued to deteriorate. Earlier this week the OG HODL’er, Michael Saylor, sold a tiny amount of Bitcoin to fund dividend payments and prices are now below Strategy’s cost basis ~75k.

Futures have been drifting lower overnight and have started to accelerate to the downside as we approach the open. Oil prices and yields are moving higher as the US/Iran continue to exchange fire and there have been no breakthroughs in negotiations. The White House proposed new tariffs of between 10% - 12.5%, to replace the 10% temporary tariffs that were put in place after the IEEPA tariffs were struck down by the Supreme Court. This will be levied against 60 countries including China, the EU, Japan and India. Private credit headlines are back as well after another round of redemption requests were capped at Partners Group and Cliffwater. Futures are near session lows with the S&P down ~0.25% and the R2K off ~0.6%.