Yesterday US markets bounced back recouping some of Friday’s tech led selloff. That selloff broke a nine-week winning streak for the S&P 500 and last night the Knicks winning streak also came to an end. The late night made for a sounder commute nap, but traders got crankier throughout the morning. Coming out of the weekend, semis led to the upside but overall the gains were modest with the S&P 500 recouping only 0.3% after the sharp selloff. It was and an inside day, the range completely within Friday’s range, and equities faded throughout the session signaling a lack of conviction. Oil gained after Israel and Iran exchanged fire over the weekend but came off its highest levels as the parties said those activities concluded (contingent on the other side stopping as well). Tech continued to dominate the news flow with Apple selling off after unveiling its updated AI platform at WWDC.

Global markets were mostly higher overnight with tech heavy indices in Asia recouping most of Monday’s selloff. Oil prices and yields were both modestly lower as there was some optimism around an Iran-US agreement helping push futures higher. Following another round headlines and deal announcements, tech was once again leading to the upside after the open after. However, that was like Stephon Castle head fake and the sector came under significant pressure, pushing the S&P 500 belowFriday’s lows. Tech and other thematic/speculative favorites are leading to the downside, raising some question as to how much of this is traders making room for Friday’s SpaceX IPO, keep in mind CPI is out tomorrow morning. Just before 1:00 President Trump posted that the pilots who were in the helicopter that was shot down last night were safe but, “Nevertheless, the United States must, of necessity, respond to this attack", pushing equities to fresh session lows. However, shortly thereafter the NYT reported that the administration is in discussions with Iran about a 15yr enrichment suspension which has helped markets bounce. As we head to print the S&P 500 is about 100pts off the lows down just under 1%. The equal weight version of the index and small/midcap indices ex the R2k are modestly higher.