Good morning. Last week the S&P 500 traded in a ~1.5% range, ending modestly higher with technology doing most of the heavy lifting. The NYSE 100 index was up >2% but the Semiconductor index, which entered the weekend on an 18 session win streak, was the star of the show up >10% for the week and 50% YTD. Iran news during the weekend was somewhat quiet and overshadowed by the shooting at the White House Correspondents’ dinner, which thankfully was stopped before anything truly terrible happened. One of the main reasons for the quietness was because President Trump didn’t send negotiators to Pakistan for another round of talks, though he added that talks didn’t have to take place in person. Axios and others then reported that the Administration is mulling over a new proposal from Iran, which includes reopening the Strait and lifting the US blockade, while negotiations on Iran’s nuclear program would come later.

US equity futures are little changed while crude is adding another 1%. Markets could be sitting on their hands while waiting on the two big events this week: The FOMC meeting and mega cap/hyperscaler earnings, part of the one-third of S&P 500 companies reporting this week. So far earnings have been strong. Over 80% beat both EPS and revenue estimates and earnings growth is tracking to ~15% y/y.

Treasury yields are about 1-2bp higher across the curve. The US Dollar Index is moving lower, falling below its 200d ma ~98.30. As mentioned, crude is modestly higher, while precious metals are down ~1%. Crypto is relatively unchanged. Bitcoin pulled back to its 100d ma back after testing $80k and Ether is doing about the same with $2400.