Good morning,

With so much discussion about space, gravity finally prevailed on Friday as US equities sold off sharply after a strong jobs report sent yields higher. The selloff snapped a nine-week winning streak over which time the S&P 500 was up ~20%. That being said, the most important winning streak in NYC is still intact after the Knicks won a nail biter on Friday in San Antonio. The team returns to MSG with a 13-game winning streak and the magic number down to two games. Tech, which led to the upside, got hit the hardest on Friday with the NYSE 100 down ~5% and the NYSE Semiconductor index falling 10%. Defensive/yield-oriented sectors (Consumer staples/healthcare/Utes/REITs) ended the session with modest gains.

Friday’s selloff sent shockwaves across global markets overnight with sharp declines particularly in Asia. Iran/Isreal exchanged attacks over the weekend which sent oil prices higher overnight. However, prices have pulled back after Iran declared an “end of military operations” against Israel. President Trump has called for an end of attacks and reportedly spoke with Netanyahu this morning. Oil prices are up ~1.5% with trading ~$94.75, the overnight rally failed just under the declining 20d ma ($98.35). S&P futures were modestly higher throughout most of the overnight session and have extended gains currently up ~0.75% while the R2k is up >1%. Treasury yields were extending Friday’s move higher but since reversed ~5bps pulling back to around unchanged levels.