Markets rallied on Friday for the third straight week, softening the weekly loss once again. With markets sputtering, NY Fed President John Williams got out his jumper cables, suggesting that there was still room for further policy easing. That triggered a reset of rate expectations that had been moving hawkishly higher, while driving a significant rotation within equity markets. The S&P 500 ended the day up 1%, reclaiming the 100d moving average (~6552) which it had broken in the prior session. More interest rate sensitive pockets of the market outperformed, including small and midcap indices which closed up between 2.5% - 3%. Today equities are following through on Friday’s strength to start a very holiday-shortened week. Markets are closed Thursday for Thanksgiving and closing early on Friday. Also, today is the MSCI Quarterly Index Rebalance at the Close. The S&P 500 opened up 0.5% and extended those gains throughout the morning, currently near session highs ~+1.5%. That puts us just under the 50d ma ~6712. Small caps are trading in line while the S&P equal-weight is up but lagging as mega caps see some of the largest gains. Alphabet is pushing the Comm Services sector to the lead today as their AI platform continues to generate positive headlines. Tech is also strong with the NYSE Semis index jumping 5%. Consumer Staples sector is lagging on the rotation from defensive. Energy is lower despite crude rebounding into positive territory. Metals have bounced from earlier lows and are mostly higher, with gold up modestly and larger gains from other precious metals. BHP announced it was walking away from M&A talks with Anglo American. Buyers are finally coming in to the crypto complex. Bitcoin is up 5%, to ~$88k while ETH is up 8%.

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