Major indices are higher with the S&P 500 on track for its 8^th weekly gain, making it the longest streak since 2023. Overall, there is broad market strength and solid tech leadership despite the latest consumer sentiment results (more below).

Yields continue to face upward pressure following comments of Fed Waller (a voting member) who said he would need to see improvement on inflation to consider a rate reduction.

The CME FedWatch now assigns a greater chance of a rate hike at the October meeting under new Fed Chair Kevin Warsh, who was sworn in this morning.

Health Care (XLV) holds the widest gain, driven by gains of Merck (MRK) who received several positive updates related to its oncology drugs. Technology (XLY) is the second best performing sector with semiconductor and software names seeing solid gains.

University of Michigan consumer sentiment came in at a record low in May to 44.8, below initial reading of 48.2. Both components also fell sharply and into record low territory while the long-run inflation expectation jumped to a 7-month high.

• Current Conditions down 45.8 from 47.8 preliminary
• Expectations down to 44.1 from 48.5 preliminary
• 1-year inflation 4.7% from 4.8% preliminary
• 5-10 year inflation 3.5% from 3.4% preliminary

As a reminder, bond markets close at 2pm ET.  The stock and bond markets will both be closed on Monday for Memorial Day.

Have a great long weekend!