Michael P. Reinking, CFA
Sr, Market Strategist

Yesterday was a mixed session with the S&P 500 ending higher by 0.3% driven by gains in the mega-cap stocks. The equal-weight version of index and small/mid-cap indices all ended slightly lower. Yields pulled back modestly after moving higher for three consecutive days. However, global yields are reversing pretty much all of yesterday’s move following UK inflation data that showed some moderation from last month but came in ahead of expectations potentially pushing out a June rate cut. In addition, New Zealand’s central bank pushed out projections for policy easing. US yields are up ~4bps across the curve. Asian markets were mixed overnight but European indices have been under pressure partially in response to reports that China could initiate 25% tariffs on imported vehicles which is weighing on auto companies and hitting luxury names for fear of future actions. In the US, there has been a mixed response to earnings out since the close. S&P, Dow and Russell 2k futures are all modestly lower but there continues to be outperformance in the semis and other large-cap tech names after Analog Devices (+>5%) put up solid results and suggested “that we are at the beginning of a cyclical recovery”. Not that you could forget but Nvidia earnings are after the close.