Major indices are all moving higher amid broad participation as well as energy prices moderating from recent highs. The major indices remain below their respective 200-day moving average, suggesting a degree of caution.

There is green across the screen, with most Magnificent Seven names moving higher. The pockets of red are falling mostly in Software (IGV) and Energy (XLE).

Energy (XLE) is taking a breather as investors assess peace negotiation prospects and WTI oil moves off the $100 level, seen earlier this week. Meanwhile, Materials (XLB) is the best performing sector as metal commodity prices continue to recover from recent dips. Consumer Discretionary (XLY) is the runner-up with Tesla (TSLA) and Amazon (AMZN) providing solid leadership in the sector. Amazon (AMZN) received 2 price target upgrades this morning and yesterday the company announced they bought a startup making humanoid robots called Fauna Robotics.

The 10-year Treasury Yield (TNX) is down 7.4 basis points today and at 4.318%, a retreat from last week’s spike.

In other news, last night Google (GOOG/L) announced a new compression algorithm to reduce LLM cache memory by 6x and improve speed by 8x, with no loss to quality or accuracy.

It was another weak auction, but this time for the 5-year. High yield was 3.98%, up from 3.615% last month, but the real tell is the allotted at the high of 89.88%. This means nearly 90% of the bids at the stop got filled. In other words, almost nobody bid aggressively below the ceiling.