Major indices are seeing solid gains driven by broad strength as oil prices retreat.

The rotation in hyperscalers is shaking the tape today with solid strength in an open Legacy Hotline position; Microsoft (MSFT). The stock has gained 26% in the last 3 days and has seen its best rally since 2000.

Eight sectors are higher with communication services (XLC) and consumer discretionary (XLY) in the lead driven by gains in Meta Platforms (META) and Amazon (AMZN), respectively. Energy stocks are the laggard after Trump made a couple of announcements this morning (more below).

Notably, many consumer stocks are reaching 52-week intraday highs.

Middle East Update

Trump announced on Sunday that he agreed to call off the attacks due to what he said were the “perimeters of a deal.” However, Iran said this morning it was not currently holding talks with the U.S. and was in talks with Oman for a safe route through the strait. Today, Trump branded the Iranian regime “unbelievably duplicitous,” saying they asked for talks on ending the war.

*TRUMP SAYS IRAN PRIVATELY SEEKING TALKS

*TRUMP SAYS U.S. NAVY CONTROLS STRAIT OF HORMUZ

*TRUMP SAYS SANCTIONS STAY UNTIL IRAN DEAL

*TRUMP SAYS IRAN WILL NEVER HAVE NUCLEAR WEAPON

*TRUMP SAYS TALKS WITH IRAN ARE CONTINUING

Economic Data

ISM manufacturing PMI moved to the highest since May 2022, driven by production reaching a nearly 5-year high while employment returned to expansion for the first time since September 2023.

The report overall showed 38% of the comments were positive and 62% were negative. Demand mentions were mixed with the strongest in AI or defense-related sectors while some other areas saw softening.

Construction spending declined -0.1% MoM in June to a seasonally adjusted annual rate of $2.167 trillion. Private construction fell -0.1% MoM, with residential spending down -0.3% MoM. The report showed the construction sector remains soft relative to last year despite pockets of resilience in nonresidential activity.

Data center construction spending rose again in June, bringing the pace up to 45.8% YoY.

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