The early attempt to rally faded with indices pulling back to session’s lows.

Energy (XLE) is in the lead and getting a boost from increasing escalation in the Middle East (more below). The runner ups are defensive sectors, with Consumer Staples (XLP) holding the widest gains. Meanwhile, Industrials (XLI) is the worst performing sector, with freight brokers selling off after news that Amazon (AMZN) will offer trucking services. Consumer Discretionary (XLY) and Technology (XLK) are also lower as growth sectors see further rotation.

Notably, both the NYSE and Nasdaq still have more new highs than lows. Additionally, the NYSE is still seeing more advancers than decliners.

There were some additional Iranian strikes on ships passing through the Strait of Hormuz this morning, further escalating the reignited situation.

This has led oil prices to move back above the $90 level.

Anthropic released its first “Mythos Class” model called Fable yesterday.

While benchmarks are impressive, the model has very tight guardrails intended to limit cybersecurity and biology topics for safety, though they often spill into other areas too.