Equities were in the green today, with the Nasdaq Composite (NDX) leading the charge with a gain of over 50 basis points. The S&P 500 (SPX) and the Russell 1000 Index (RTY) also posted solid gains, with the latter up by around 34 basis points. Yields cooled off today, which may have contributed to the upswing in equities.

In the tech sector, Amazon (AMZN) was added to our conviction list, with its price target raised to $375 due to the strength of its AWS segment. The company’s AI workloads are driving topline momentum and operating margins, and Physical AI is also supporting continued margin expansion.

In other news, global IT Services (GSXGITSV) was up by 6%, with better numbers across the board versus extremely bearish expectations and a short setup. Credit spreads were dominating today’s inbounds in the financial sector, with issuance expectations remaining high despite the higher interest rate picture. However, there has been some divergence between higher- and lower-quality credit within high-yield, and our cross-asset desk is seeing a pickup in interest in using credit as a macro hedging vehicle.

Liquidity levels on the exchange were up to 32% of the tape, with critical technical thresholds to watch on the S&P 500 at 7661, 7448, and 6980. Our flows were 3% better to buy across the floor, with activity levels at a 4 out of 10 and LOs balanced but skewed slightly better sellers on small notional.

Overall, today’s market action suggests that investors are still optimistic about the prospects for equities despite the recent volatility. The cooling of yields and the strong performance of tech stocks may have contributed to the upswing in sentiment. However, it’s important to keep an eye on credit spreads and issuance expectations, as these factors can impact the overall health of the market.