Good morning and Happy Friday. Yesterday US equities finished lower with the S&P 500 seeing a modest 0.4% decline while small caps came under greater pressure (R2K -1.5%). Software reversed its weakness, with several names trading sharply higher on earnings, while semis flipped to weakness, taking a step back after in the midst of a phenomenal runup over the past month. Macro pressure came from the reversal of the positive Iran signals on Wednesday, as news of Iran looking to impose conditions on transiting the Strait and divergent outlooks on Iran’s uranium stocks helped push stocks lower.

This morning markets are brushing off an exchange of fire between the US and Iran in the Strait of Hormuz yesterday evening. President Trump downplayed the events, calling it “trifle” and said the ceasefire remained in effect. S&P futures were trading up around 0.5% before a strong payroll print sent them to the highs of the day before pulling back to prior levels.

Treasury rates moved lower despite the strong headline numbers, with the Dollar down as well. Crude is up modestly this morning with Brent back to ~$100. Precious metals rose after the employment numbers as rates fell, while Bitcoin is falling after the report, trading around unchanged. Ag is mostly higher.