Major indices are lower across the board today as the Street reacts to another sharp rise in oil prices and the conflict with Iran continues to escalate.

Microsoft (MSFT) and Amazon (AMZN) are the only magnificent seven names in the green. In addition, there is continued interest in software related names as investors look to bottom fish.

Interestingly, the defense space is also moving into the red despite Middle East tensions.

Energy (XLE) is the sole winner today, as energy commodities move higher driven by persistent worries about the potential of some supply interruptions. Overnight, China ordered its top refiners to suspend exports of refined fuels.

Meanwhile, the Ten Year Treasury Yield (TNX) has recovered this week and retaken the 4% level. Today, it is up 6.4 basis points and testing resistance around its 50 day moving average.

AI Update

The Trump administration is reportedly drafting a new set of regulations that would mandate export licenses for AI chip exports worldwide.

In addition, Oracle (ORCL) just announced job cuts as massive AI data center spending are adding pressure on cash flow.