It was a solid start for the week with most major indices trading higher. Here's the rub: these internals were worse than most sessions last week. Less than 50% of the names in the S&P 500 (SPX) finished higher. The space trade came roaring back with Rocket Lab’s acquisition of Iridium Communications (IRDM).

Themes

Technology (XLK) and Communication Services (XLC) crushed it across the board. All niches of artificial intelligence (AI), semiconductors, cybersecurity, quantum computing, and virtual & augmented reality were higher.

The majority of cloud computing, software (IGV), hardware, and biometrics were also higher.  

The hyper-obsession with hyperscalers coming up with dry holes has created an enormous blind spot for the naysayers, while trillions of dollars in the system have sparked untold wealth.

Smattering of Success

The S&P 500 saw six of eleven sectors higher, with Communication Services surging.

Factors

Growth and momentum led the charge, but quality finally caught a bid. Interestingly, small-caps pulled back.

Today’s Session

Although the jobs report looms large for Thursday, this morning has that lazy summer session feeling.

Many early movers are easing into the opening bell.

The good news is the spike in the number of vessels making it through the Strait of Hormuz.