Yesterday, the market displayed a negative bias in the morning, but losses widened as geopolitical concerns moved oil prices higher in the afternoon. However, the strength in semiconductor stocks helped limit the Nasdaq’s decline.

Momentum (MTUM) is getting ready to take flight, reaching its best level since July 1^st.

The late climb in oil left the Energy Sector (XLE) as the only sector to finish higher, overshadowing a strong showing from chip stocks. Weakness in software stocks and large technology names pulled the Technology (XLK) Sector into negative territory. The Communication Services (XLC) was among the worst performers, as Meta Platforms (META) remained under pressure as the company goes to trial about kids and social media addiction.

Enthusiasm surrounding the artificial intelligence (AI) trade remains strong after Anthropic reported that its second-quarter revenue jumped at least 14 times from a year earlier.

Volume was light overall, but new lows on the New York Stock Exchange (NYSE) stood out.

On the Treasury market, the 30-year bond yield hit a fresh high for the year. The rise in yields comes even as the Citi U.S. Economic Surprise Index is falling. The last time we saw this was in 2024, when bond yields would eventually peak and move lower.

Today’s Session

Major indices are indicating to open lower across the board as oil and rates move higher on Middle Eastern Tensions.

Notably the Ten-Year Treasury Yield (TNX) is nearing the top of its 52-week range, around the 4.75% level.

Alphabet (GOOG/L) is making interesting news as it acquires Spirit Airlines data for training their AI.

Economic Data

Housing Starts for July fell 12.4% M/M from a 19.7% rise in June.

Meanwhile, building permits rose 5% M/M in July following a 2.6% decline in June.

Import prices fell 0.4% M/M in July following a revised 0.3% decline in June, missing estimates of a 0.1% increase.

Export prices fell by 1.3% M/M in July from a 0.7% decline in the prior month, below estimates of a 0.2% rise.

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