All major indices are moving higher, with the Nasdaq and S&P 500 hitting new record highs, as investors assess economic data and react to the recently announced ceasefire in Lebanon.

Just before noon, Trump announced that Israel and Lebanon announced a 10-day ceasefire. This should further Iranian peace negotiations and ease tensions in the region.

Energy (XLE) is the leading sector and getting a boost from some strength in energy commodities, due to the continued disruption of flows out of the Strait of Hormuz. The runner ups are Real Estate (XLRE) and Technology (XLK), which is notably seeing participation from both semiconductor and software components.

In other news, Anthropic released the new version of their Opus model, which shows strong improvement and will be at the same price point as the prior model.

Economic Data

The New York Fed Services Activity Index eased to -14 in April from -22.6 in March. Meanwhile, the expected index fell to 2.9 from 12.7. In the report, input prices rose while employment edged slightly lower and selling prices picked up slightly.

Industrial production in March rose 0.7% YoY, following a downwardly revised 1.2% rise in February. Utility output rose 3.1% and manufacturing rose 0.5%, but mining moved 0.2% lower.

Treasury Markets

This week is the U.S. tax deadline where Treasury receives tax payments. Liquidity markets are prone to get squeezed for the moment and some volatility is expected. This is not a warning, but a force to be aware that could affect commentary from the Fed in coming meetings.

Speaking of the Fed, this morning Fed Miran mentioned he is currently considering three to four rate cuts over the course of the year. 

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