Good morning. A historic Knicks comeback win and optimistic Iran headlines helped push equities higher yesterday as global yields and oil prices fell. The S&P 500 and the equal-weight gained 1% while small caps saw the best gains as the Russell 2000 added over 2%. Yields fell ~10bp across the curve, oil declined >5% and precious metals were higher. Consumer Discretionary was the leading sector, benefiting from the oil and yield moves and Tech outperformed as well with semi infrastructure names strong, outperforming software. This was a prelude to the highly anticipated Nvidia earnings after the close. As expected the company beat estimates and reported robust growth metrics.

S&P futures opened lower last night but gradually strengthened during the session before incremental Iran headlines pushed futures around both ways. Futures fell again on comments from Iran’s supreme leader that weapons-grade uranium must stay in Iran, and are currently down -0.4%. Economic data so far has been relatively uneventful. Jobless claims were inline and on-trend. Housing Starts beat expectations, falling from last month but remaining above recent levels. Flash PMIs will be released after the open, following the global flash PMIs that fell broadly across Asia and the EU.

Treasury yields are backing up, reversing much of yesterday’s declines at the short-end, while the long-end has moved less with Iran tensions increasing again. The US Dollar is strengthening as well. Brent crude is cutting into yesterday’s losses, up ~2% this morning after trading to its highs on the Iran uranium comments. IEA chief Fatih Birol said that depleting inventories and summer demand could push oil markets into a "red zone" in July or August. Metals are lower by about 1% and crypto and ag are modestly lower as well.