The equity market is experiencing choppy price action today with no clear catalyst driving the move. Tech stocks are leading the way lower, with the Nasdaq Composite (NDX) down 106 basis points and long-term momentum stocks underperforming following yesterday’s move higher. Meanwhile, breadth indicators are showing signs of a broadening out of the market, with approximately 320 names in the S&P 500 currently green on the day.

In crude news, oil prices are trading heavily down 591 basis points ahead of the US and Iran preparing to sign a peace deal Friday. Rates are easing in tandem, with the 10-year yield hovering near 4.4%. This is leading to strength in cyclical sectors such as housing, with home builders up 113 basis points and other pockets of the market benefiting as well.

High beta momentum is taking a breather today, driven by a decline in the long leg of momentum stocks. Within this group, AI-related semis are down 382 basis points, optical stocks are down 552 basis points, data centers are down 240 basis points, and AI software is down 175 basis points.

SPCX continues to be a hot topic on the trading desk, with the security trading up 9.75% and touching $225 (deal price $135) on its second full day of trading and first day of options trading. At today’s peak, SPCX market capitalization had surpassed both Amazon and Microsoft.

Volume and liquidity are slightly higher today, with overall market volumes tracking 6% higher than the 20-day moving average. However, liquidity remains poor, with the top of book sitting at $2.69 million, down 68% from the 20-day moving average.

On the desk, activity levels are at a 4 out of 10, and we are currently skewed 9% better for sale across the floor. LOs (long only) are 13% better for sale, with supply in info tech and consumer discretionary versus insignificant demand in comm services and utes. HFs (hedge funds) are skewed 17% better for sale, with notable supply in communication services and info tech versus demand in industrials and macro.