S&P futures were modestly lower overnight and the index opened down about 0.3%. A little before the Opening Bell, Meta was reported to be forming a new cloud business to sell its surplus compute capacity. Meta company has been one of the most aggressive companies in the AI buildout, and investors have been wondering when the hyperscalers blink at ever increasing capex spend. This isn’t exactly that moment, but investors are liking the announcement, pushing META up 10%. Semis, neoclouds and memory stocks are getting hit on the news. On the flip side of that trade, software is seeing strong gains. Sectors are split between gainers and losers. Small caps are modestly higher.

Comm Services is the best-performing sector today on the back of Meta’s jump. Financials are also strong, helped by FactSet's earnings reaction. Amazon’s 3% gain is helping Consumer Discretionary outperform, as is strength in travel/leisure and retail. That includes Nike's gain following earnings. The company’s commentary was not particularly robust however, noting that “our consumer is under pressure around the world, and we can particularly see it having a larger impact on Sportswear…” Consumer Staples is lower but General Mills is up sharply following earnings. That’s helped consumer packaged goods but big box retailers are lower. Utilities are also lagging, with the IPP’s under the most pressure.

US yields which were up slightly have retreated across the curve to around flat. Brent crude is down over 2% today, once again getting rejected at its 200d ma and looking a potential move down to $70. Metals were under pressure overnight with gold breaking back below $4k, but the complex has rallied off the worst levels. Crypto is making a move higher as Bitcoin tries to regain $60K and ETH holds $1600.