Yesterday felt like Ground Hog’s Day following another pause in kinetic activity with Iran over the weekend. Oil prices and yields pulled back which along with a strong ISM Manufacturing print helped to trigger a pretty broad-based equity rally. The S&P 500 was up 1.5% trading back up to 7,600 just below the early June all-time high. The hyperscalers led to the upside while neoclouds were also very strong. Nvidia masked some weakness early on within the semi complex while memory stocks recouped most of the early losses. The software sector also rallied with the IGV ETF up 3%, breaking above its 200d ma a level it’s been consistently below since the end of last year. Energy and defensive/yield-oriented sectors underperformed.

Futures extended yesterday’s gains ahead of the open with another strong round of earnings and building hopes for a diplomatic resolution in Iran. Oil prices reversed overnight gains after a spokesperson from Qatar’s foreign ministry said language had been drafted on a short-term Iran/US deal. Then during a CNBC interview Treasury Secretary Bessent suggested there could be a deal to reopen the Strait either today or tomorrow taking ICE Brent down to ~$80. Treasury yields also reversed a move higher overnight. The S&P 500 opened up about 0.4% just over the previous all-time high and has not looked back since, currently up nearly 2% easily breaking above 7,700. Tech is doing a lot of the heavy lifting with the NYSE 100 up 3.5% but the gains are broad based. Most major indices are up >1% either hitting or within a rounding error of new all-time highs.