Market Update

Happy Friday,
 
After a brief respite on Wednesday the selloff in risk assets resumed yesterday. The S&P 500 fell 1.1% breaking below its 20d ma with some concerns about funding for the AI buildout increasing. The weakness was broad based but most pronounced in the more speculative pockets of the market while value-oriented sectors outperformed.  There isn’t much in the way of new news, but the weakness continues this morning. US futures are once again in the red but off of the lows which coincided with a bounce in Bitcoin after it tested this week’s low ~99k this morning. The VIX is hovering near the highs of the week ~20.5.
 

 
Overnight tech heavy markets were under pressure again with indices in both Japan and South Korea falling over 1% bringing WTD losses to ~4%. China’s trade balance shrunk more than expected with both imports and exports coming in below expectations. Local indices fell modestly but have outperformed this week closing out the week up ~1%. European indices opened slightly higher but have been bleeding lower throughout the session down between 0.5% - 1%.
 

 
After the open consumer sentiment surveys from U of Mich. and the NY Fed will be released. Yesterday yields fell sharply after the Challenger report showed a big jump in layoffs. Treasury yields at the front end of the curve are near the lows of the week while the long end is ticking up slightly. The USD index is a touch lower hovering ~$99.50.
 

• US 2yr +0bps to 3.56%, 5yr +0bps to 3.69%, 10yr +2bps to 4.10%, 30yr +3bps to 4.71%
• USD index: -$0.13 to $99.46

 
Commodities are mixed. Oil prices are bouncing modestly but still down for the week while the situation in natural gas markets are flipped. Precious metals are slightly higher with the range getting tight after the selloff which started a couple of weeks ago. Ag is mixed but the complex is slightly lower for the week after recent gains. Bitcoin retested the week’s low ~99k around 8:00 am and has bounced back over 100k, keep an eye on this for some hints.
 

 
 
Earnings/Corporate Updates:

• After-Market: ABNB, ACHR, AFRM, AGO, AHR, ALG, ALTG, AMBQ, AMN, AMPX, AORT, ARLO, BBDC, BILL, BKD, BLND, CABO, CC, CE, CHMI, CIVI, CON, CPK, CPT, DOCS, DRH, EB, ED, EOG, EVH, EVTC, EXPE, FG, FIGS, FLO, FNF, G, GHI, GMED, GRND, GRNT, GSBD, HASI, HCI, HRB, HUN, IFS, KFS, KODK, KRMN, KRO, LDI, LION, MAIN, MCHP, MNR, MODG, MP, MSDL, MTD, MTUS, NHI, NL, NNI, NOG, NOTE, NRDY, NUS, ONL, ONTO, OUT, PAR, PBR, QXO, RC, SG, SMR, SNDK, SOLV, TSE, TTD, TTWO, VEL, VHI, VTEX, WYNN, XPOF, XYZ, YELP
•  Pre-Market: ACRE, ASIX, ATMU, AXL, BAM, BEN, BIP, CEG, CNH, CTEV, DK, DKL, DUK, DV, ESNT, FLR, FUN, GHM, GLP, GTN, HLLY, KKR, KOP, MMI, SHO, SLVM, TDS, WEN

Economic Data:
US:

• 10:00 U of Mich. Sentiment
• 11:00 NY Fed Survey of Consumer Expectations
• 1:00 Rig Count

Global:

• Japan Household spending: -0.7% prior 0.6%
• China Exports: -1.1% vs. 3% cons., prior 8.3%
• China Imports: 1% vs. 3.2% cons., prior 7.4%
• Germany Exports: 1.4% vs. 0.5% cons., prior -0.8%
• Germany Imports: 3.1% vs. 0.5% cons., prior -1.4%
• Canada Employment: 66.6k vs. -2.5k cons,. prior 60.4
• Canada Unemployment: 6.9% vs. 7.1% cons., prior 7.1%