Yesterday, the initial negative takeaways from the weekend’s US-Iran negotiations gave way to more optimistic views throughout the day with equity markets closing near session highs. The S&P 500 and equal-weight rose 1% and the Russell 2000 outperformed, up 1.5%. There was a notable thrust higher in the final fifteen minutes of trade as some of the systematic demand we discussed in Friday’s note showed up. Oil prices ended higher but off of the overnight highs. Tech and financials led to the upside. The stocks that got hit hardest last week in the wake of the Mythos release snapped back including software, financial data services and asset managers with private credit exposure.

Equities are extending to the upside today as the ceasefire has held, US and Iran remain in active discussions and the potential for a second round of talks are being discussed. JD Vance said, “we made a lot of progress” and there were exchanges of enrichment moratorium timelines according to several media outlets. Oil prices are reversing much of the weekend move higher falling ~5%. This is helping risk on sentiment, and it feels like there is a bit of a FOMO chase as investors are not properly positioned for an assault on all-time highs.