Yesterday, US equity markets opened higher as there was some stabilization in the momentum unwind but major indices faded throughout the session closing slightly lower. Reports of a potential 10-day ceasefire helped oil prices pullback from the Sunday evening highs after a pickup of kinetic activity over the weekend. The S&P 500 ended the day down 0.2% spending most of the session trying to hold above its 50d ma. Breadth wasn’t great with only 3 of 11 S&P 500 sectors ending in positive territory. Healthcare, materials and industrials underperformed all falling ~1%. Tech outperformed modestly with particular strength in data centers/neoclouds following contract and ARR news from HUT and IREN while the mega-cap tech names also ended modestly higher.

After a strong tech lead overnight session in Asia US markets are rallying despite oil prices and Treasury yields testing recent highs. Geopolitics remain front and center with tariffs back in the conversation again. It is a quiet day of economic data, but earnings are making up for that. Yesterday’s tech bounce faded but today there has been a “gap and go” with many semi and memory stock up between 5% -10%. Tech is doing most of the heavy lifting, but breadth is improved from yesterday though adv:dec is still less than 1:1 in the S&P 500. After gapping up ~0.5% at the open the S&P 500 pulled back to test its 50d ma again and the index has been grinding higher since but has yet to break above yesterday’s opening levels. As we head to print most major indices are ~1%.