The Goldman mid-day wrap provides a comprehensive overview of the market’s performance during the mid-day session. Today, the market is experiencing mixed emotions as investors digest a range of headlines from the Middle East, including Iranian leader Khamenei’s statement that the Strait should remain closed and Iran’s Deputy FM denying the laying of mines in the Strait. Meanwhile, President Trump has announced his intention to suspend the Jones Act to tame oil prices, which continue to trade at elevated levels near $95 per barrel.

In terms of ETF performance, the market is seeing a strong showing from defensive sectors such as Utilities, Real Estate, and Energy. The Equal Weight vs Cyclicals basket is also performing well, with gains of over 130bps. However, there is some negative price action in certain areas, including VIP Longs vs Shorts, High Beta Momo, and Software vs Semis. The HF sell skew is also notable, with a significant notional amount available for sale at a discount of 30% compared to the past 52 weeks.

In addition to ETF performance, there are some notable news flow updates from the private credit space. Blue Owl’s private credit fund valuations have been questioned by Glendon, and Morgan Stanley and Cliffwater LLC have capped withdrawals from private credit funds. While this may not be entirely new news, it highlights the ongoing scrutiny of the private credit market.