The late summer mood remains entrenched here on Wall Street. It's quiet as the market awaits this week’s big catalysts starting tomorrow- PCE and NVDA earnings. Pakistan said “significant” progress was made in talks with Iran, helping equity sentiment as it pushed oil lower. The S&P opened up 0.3% and has traded between there and unchanged in another tight range. Tech is bouncing back today, helping the regular index outperform the equal-weight. The Russell 2000 is outperforming as oil and yields fall. Canada announced $20B in retaliatory tariffs on US goods, to taking effect Sept. 8. The tariffs will hit steel, aluminum, furniture and electronic products, with a similar footprint as the US tariffs (~5% of imports).

Tech is the leading sector today, bouncing back from yesterday's weakness ahead of NVDA and CRM earnings tomorrow night. The NYSE Semis Index is up ~2% while the DRAM ETF is up 3%. Neoclouds and reversing yesterday's weakness as well while the hyperscalers are mixed. Healthcare is another leader today. Biopharma strength is offsetting broader Med Tech weakness, along with modest weakness in services. Energy is lagging with oil's weakness. Consumer Staples is also weaker as the sector sees across-the-board declines. Big box retailers are down along with retail in general as DKS trades sharply lower following earnings. The company noted "as the quarter progressed, conditions across portions of the athletic footwear and apparel marketplace became increasingly promotional..." and guidance was lowered.

Oil prices are at their lows today with Brent down over 3%. The commodity was trading lower overnight after Pakistan mentioned substantial progress in the Iran situation. It took another leg lower around noon after news of an agreement between Oman and Iran that would establish safe passage through the Strait. Equities are also being helped by the move lower in yields. 10/30y are down ~5bp and are looking to test the lower end of the range they've been trading within over the past month.