Major indices are moving marginally lower, pulling back from this morning’s highs.

Yields and oil are adding pressure to the market, as they move higher on continued tensions from the Middle East. Over the weekend, Iran published its demands for reopening the Strait of Hormuz. These included compensation for the damage done to the nation during the conflict.

In the past hour, Trump rebuffed the Iranian demand for compensation with a counter-demand for compensation.

Energy (XLE) is at the top of the list because of the move higher in oil. Meanwhile, the rate sensitive sectors of Utilities (XLU) and Real Estate (XLRE) are lagging. Notably, Technology (XLK) is moving lower overall, but software names are bucking the trend today and moving into the green.

AI Info

Nvidia (NVDA) is teaming up with several big names on the street for a $500 billion AI infrastructure financing deal.

Meanwhile, Microsoft (MSFT) is planning to ramp up production of its next-gen Maia 300 AI chips, which are expected to be unveiled in September. The company is reportedly in talks with Taiwan Semiconductor Manufacturing (TSM) for 300,000+ units of production capacity, with delivery slated for 2027.