Equity futures were trading slightly lower earlier this morning, though the S&P was off its lows after climbing at the start of the European session. The S&P opened down 0.3% and the Russell was down 1%. A brief run to unchanged was quickly sold and equities have slipped further into negative territory, with small caps the worst off.

Another day of gains for oil is putting Energy as the lone sector higher. Defensive sectors aren’t providing much defense: Staples is lagging Discretionary. Travel sites are rallying on reports that OpenAI is scaling back plans for in-app checkout. Most of the rest of Discretionary is lower. Healthcare is near the worst performer with broad weakness. Industrials are the worst off as investors peel out of the Defense names. Other hot groups like freight/transport and construction are also solidly in the red as well.

Ahead of tomorrow's payrolls data, weekly initial claims were essentially inline and unchanged while continuing claims ticked higher. Challenger job cuts stepped down from last month's high print. Treasury yields moved higher and the US Dollar Index is up as well, back above 99 with the Dollar stronger against the major crosses.

Crude is trading higher again today and is at its best levels with Brent clearing $85. Presdent Trump said he isn’t looking into tapping the SPR. Precious metals are lower as is copper in the face of higher yields and a stronger dollar. Bitcoin and Ether are down ~3% and at their lows on the day.