Good morning. Yesterday the S&P ended about flat with mega caps mostly weaker, the equal-weight up 0.2% and the Russell fell 0.3%. A hot jobs report triggered a jump in yields but they settled off their highest levels with some bear flattening. The pressure on Bitcoin continued while Iranian tensions pushed crude up 1% and gold/silver climbed as well. Software continued to get hit, and the pressure on financial names continued, but this time seeing real estate data names among the worst hit. Meanwhile data center suppliers were very strong on earnings (VRT, GNRC, BWA). Energy, Staples, Materials led while Financials, Comm Services lagged.

US futures were trading around best levels before moving a bit lower ahead of today’s claims data. Initial claims were slightly higher than expected (227k vs 222k) but continued the Low Hire Low Fire narrative. The print comes on the heels of yesterday’s hot jobs report and ahead of tomorrow’s CPI. Futures hit best levels after the data but are coming off those highs. Existing Home Sales are after the Bell.

Yields were lower with slightly more flattening (2y -1bp, 30y -2p) but didn’t move much on the jobs data, which likely keeps the Fed on hold until the summer. June sees a ~60% chance of a cut. The US Dollar Index is flat. Crude is modestly lower. The IEA lowered its global oil demand forecast for 2026 from 930kb/d to 850kb/d in the latest Oil Market report. Metals are flat (gold) to slightly lower. Gold has spent this week trading around $5100. Bitcoin is up modestly, trading around $67k and Ethereum below $2k. Coinbase was hit with a double downgrade overnight but also launched Agentic Wallets that allow programs to trade and move crypto assets without human intervention. Wind it up and let it go. News that crypto lender BlockFills halted withdrawals is not helping sentiment.