Stocks are mostly higher today, with major indices sporting solid gains and showing signs that AI fears are waning. In addition, the Street waits for the Fed minutes at 2 pm EST for an insight into interest-rate cuts.

The so-called fear index (VIX) finally tanked from 20 towards 18. The Russell 2000 was the first one to run higher, followed by the S&P 500 and Nasdaq.

A new day, a different story. This afternoon, Technology (XLK) is leading the way and recovering, after a turbulent stretch that saw software names bruising. Interest-rate sensitive sectors, such as Real Estate (XLRE) and Utilities (XLU), are underperforming as yields rise.

Economic Data

Durable goods orders for December slipped to -1.4% MoM, surpassing consensus of -2% but weaker than +5.4% in November. The decrease was driven by transportation equipment. Excluding this, total orders increased 0.9%.

Housing starts saw a five-month high in December, up 6.2% M/M to an annual pace of 1.4 million homes, and surpassed expectations of +1.1%. Building permits rose to 4.3% M/M to 1.448 million, exceeding forecast of a 0.2% decline.

It was a weak 20-year bond auction where $17.9B 20-year bonds were auctioned at a high yield of 4.66%, tailing the when-issued yield by two basis points.