It was another volatile session yesterday. Markets rallied after the open trading up ~1% with the S&P 500 topping out ~6,900. The index pulled back to almost unchanged after the Fed minutes highlighted the continued divide on the Committee before rallying again in the final 30 minutes of trade. Energy led to the upside as oil prices moved higher amidst reports the US was preparing for military action in Iran. Otherwise, it was a countertrend day with mega-cap tech, financials and stocks that have been hit by AI disruption fears rallying. The defensive/yield oriented sectors which have moved higher recently pulled back.

The fact that this week is options expiration has added to some of this week’s volatility. Speaking of, the last three Thursdays have been quite volatile - the first was the start of commod-atility when the metals complex fell sharply. The last two weeks the S&P 500 has fallen by over 1% before bouncing back on Friday. US futures were modestly higher overnight but have turned lower after European indices opened as the IAEA head said that Iran’s diplomatic window is closing. Futures are hovering around session lows.