Last week the S&P 500 extended its winning streak. This was despite Brent crude still well above $100 and yields moving higher. Earnings continued to be very strong. That helped the S&P rise to a new record, like Yoda lifting Luke’s X-wing fighter out of the swamp on Dagobah.

Equities may have reached new heights but today they haven’t made the jump to hyperspace. Equities opened flat to slightly lower as the see-saw of Iran news continued but turned lower on more hostility news. The S&P 500 is currently down ~0.3%, off its lows of around -0.8%. The equal-weight and Russell 2000 are underperforming. Right now it doesn’t feel like the market has a stretch run in it today. Definitely not like what we saw from Golden Tempo at the Kentucky Derby this weekend.

The steady stream of Iran news over the past 24 hours has sent Brent up 6% and breaking through $115 before coming back a bit. Precious metals continue to come under pressure while oil, rates and the Dollar all move higher. Ag is mostly higher with the exception of wheat which is continuing to pull back from its recent highs. Bitcoin is up ~3% and regained $80k. Senators Tillis and Alsobrooks released an updated compromise on stablecoin yield in the Clarity Act.

It’s a light day on the economic calendar. Factory Orders came in above estimates and continued the generally solid string of economic data. Yields have been climbing throughout the day on the new Iran hostilities. The 30y cleared 5.0% and rates are up 7-10bp across the curve. The USD index is moving higher along with yields, breaking back above 98 and at its 200d ma.