JPMorgan: Risk-On Tone Builds as Oil Falls and Tech Leads - FJElite

US futures are higher, with the Nasdaq and Russell 2000 leading as the global tech rally continues alongside a bond rally. Yields are slightly lower and the dollar is a touch weaker, while commodities are increasingly pricing in the prospect of a deal, with WTI falling toward $90 a barrel and weakness also showing up across agriculture and metals. In equities, semis are leading again, Mag 7 performance is mixed, and cyclicals are set for another constructive session, especially in discretionary, industrials, and materials.

The broader setup points to another broad-based risk-on move, still led by semis and AI. On today’s calendar, the focus is on ADP, mortgage applications, regional Fed surveys, and the 5-year auction, which is expected to go smoothly given cheaper valuations.