Yesterday was another record day, with the market boosted by the suspension of ‘Operation Freedom’ (Project Freedom), which offered hope of a resolution in the Iran Conflict.

Green Everywhere

All S&P 500 (SPX) sectors were higher, led by Materials (XLB). But it was the Technology (XLK) Sector that continued to drive the gains. Materials have been super-hot all year, and now rare earths are hinting at a takeoff.

Factors

Momentum remains scorching hot, but quality fetched a strong bid as well.

Heat Map

“Mag Seven” that popped on earnings results continues to enjoy the tailwinds, but those that stumbled are still having trouble gaining traction.

Credit card companies, along with financial data companies, Moody’s Corp (MCO), and FactSet Research Systems (FDS), stumbled on reports that Anthropic is dropping a financial data product. Anthropic’s ‘Claude’ is only just getting started. There will be a lot of destruction.

On that note, software (IGV) is exhibiting a pulse. It's scary to jump into the fray, outside of trading opportunities, but some of these names will become grand slams.

After the close, Advanced Micro Devices (AMD) crushed it. The company posted monster results and offered mind-boggling guidance.

Today’s Session

An emerging market narrative is the consumer. The market’s reaction to earnings from Uber (UBER), Disney (DIS), and CVS (CVS) reflects the famed resolve of the American shopper.

This is critically important for the market seeking more support for the AI-powered move.

This morning, Axios reported that the US and Iran are closing in on an end to the Iran Conflict, which sent crude down swiftly and put octane into stocks.  Since the story's initial release, crude has recovered much of its losses, but the narrative is clear: this is the only hurdle in the way of the market going completely parabolic.

I know it feels that way now.

But there has been a steady climb in stocks on the NYSE, hitting new 52-week lows, and sentiment is nowhere near crazy levels.

I saw this meme and thought it was appropriate. It's too early to short, but we are spying selling into strength to capitalize on gains and mitigate risk.

My biggest concern is margin pressure. Arista Networks (ANET) margins took a hit, and the stock is under pressure this morning.

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