It was a subdued start to the week yesterday. The S&P finished marginally higher and traded in a 30-point range. The SOX semiconductor index broke an 18-session streak of gains, still having a much better year than the Red Sox and White Sox. Comm Services, Financials and Tech led while Staples, Discretionary and Real Estate lagged.

Iran news flow was similarly subdued. Iran offered its latest proposal, which President Trump told advisors he’s not satisfied with (according to the NYT) and Sec. State Rubio also said it was not acceptable. CNN then reported later this morning that Iran was expected to submit a new proposal soon.

The news with the most impact on the markets today, however, came for a WSJ article last night, which said OpenAI missed its revenue and users targets and that CFO Sarah Friar expressed her concerns about the company’s ability to pay its future compute contracts. The AI basket is under pressure with multiple names down 4% or more, taking the NYSE Semis Index down 4%. Software however is performing better. The report comes as the market is preparing for the Ozzfest of AI/Tech earnings tomorrow night when most of the hyperscalers make life miserable for the sell-side with overlapping earnings calls.

Ahead of tomorrow's Fed rate decision, treasury yields are bear flattening, moving higher along with their global counterparts. The US Dollar Index is moving higher but off its best levels when it challenged the 50d ma. Brent crude is higher. The UAE said it was leaving OPEC as of May 1. While the decision is not out of the blue, it comes at an obviously very interesting time in the energy markets. The FT reported that China was getting ready to restart oil exports after it banned them at the start of the Iran war. Metals are lower across the board with oil and yields rising. Ag commodities are mostly higher, especially wheat and corn, following last evening’s weekly Crop Progress report. Bitcoin and Ether are largely unchanged.