Stocks reached new all-time highs today as tensions in the Middle East subsided while Tech earnings continued to impress. The S&P 500 climbed by over 1% and closed above 3200 for the first time ever, with 41 stocks hitting new 52-week highs. Market breadth remained healthy, with over 310 names in the green, and single stock liquidity improved with SP volumes up by 21%. ETFs accounted for only 25% of trading activity.

Cyclicals surged while Defensives lagged, with Energy experiencing its worst move in over a year as Crude prices stabilized around $95/bbl. Healthcare was in focus during an active EPS day, with some stocks experiencing exaggerated moves. Our Franchise activity levels were up by 31% compared to the previous two weeks, and both HFs and LOs were better to buy. The HFs were only slightly more bullish than earlier in the day when buy skew reached 4%, while LOs had a larger Tech buy skew offsetting supply across various sectors.

Investors seem to be optimistic about the prospect of Middle East tensions cooling off, as evidenced by the positive sentiment around Trump’s statements on Iran. Meanwhile, Tech earnings continue to impress, with AMD scorching up by 17% and powering the broader AI trade. The improving market dynamics have led to a stabilization in top-of-book liquidity at around $11 million, which is above the YTD average of $10.3 million.

The sectors were trading in a de-escalatory manner, with Cyclicals surging and Defensives lagging. Energy had its worst move in over a year, but investors seem to be optimistic about Crude prices stabilizing around $95/bbl by year-end. Healthcare was in focus amid an active EPS day, with some stocks experiencing exaggerated moves. Our Franchise activity levels were up by 31% compared to the previous two weeks, and both HFs and LOs were better to buy.