Yesterday, US equities extended the recent gains with the S&P closing up >1% and within <1% of an all-time high again. Technology continued its recent outperformance with the NYSE 100 up >2%, its 10th consecutive positive session. There has been a bit of a FOMO chase as investors have not been properly positioned for this rally while the compression of volatility has helped bring the systematic bid back, something we discussed at the end of last week. The Russell 2k was also up >1% outperforming the S&P 600 with particular strength in many of the thematic retail favs like crypto, quantum and nuclear. Speaking of retail, the SEC removed the $25k account threshold in the Pattern Day Trader Rule helping brokers trade higher in the pre-market (HOOD +>5%).

US futures have been trading on either side of unchanged overnight. Iran headlines remain hopeful that there will not be an escalation with reports that the truce could be extended. The Washington Post headlines about troops being sent to the Middle East caused a little weakness but futures have reversed that move. It remains busy on the earnings front. Earnings from the financials have been consistent with what we’ve heard throughout the week. Equity trading in particular was very strong in Q1 while FICC has been a bit of a mixed bag. There have not been glaring red flags related to credit. Investment banking was pretty strong but about inline with estimates. Firms have done a good job of expense controls. Comments from Bank of America CEO Brian Moynihan also echo what we’ve heard from other management teams, “We remain watchful of evolving risks. However, we saw healthy client activity, including solid consumer spending and stable asset quality, indicating a resilient American economy."