Yesterday the S&P 500 closed down 0.8% for its fourth straight loss. The index rallied back to unchanged before fading in the back half of the day. Tech was a drag despite another busy day of AI-related headlines, and we’re not even talking about Nivida earnings after the close today. Beyond Tech the losses weren’t widespread with the equal weight version of the index closing around unchanged as sector rotation was in play. Today the S&P is up modestly though off its intraday high. Unlike yesterday, the equal-weight is lagging as tech-heavy sectors are out in front. Small and midcaps are trading around unchanged. It’s interesting to see what’s holding up in light of another assault on the crypto complex. Sectors are split between gains and losses. Energy, Real Estate and Staples are lagging; Energy pulled lower on crude’s weakness while Staples and Real Estate reverse yesterday’s relative outperformance. Treasury yields are flat. A 20y auction today tailed by 0.2bp but markets didn’t react. FOMC minutes are out at 2pm. There shouldn’t be much of a surprise in them as we’ve had a ton of Fed Speak the past couple of weeks that laid bare the disparate opinions of the committee. Despite the lack of movement in yields the Dollar is strengthening against major crosses. The Yen is particularly weak, moving above ¥156/$ and drawing closer to the 1y high ~¥159. After a brief respite yesterday that included a reversal after trading below $90k, the pressure on bitcoin and the crypto complex continues today but the damage isn't bleeding into broader asset classes. Bitcoin is back below $90k, near yesterday’s lows. Crude is down ~2.5%. Politico reported that a framework peace deal between Ukraine and Russia could be completed by the end of the month.

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