Indices:- U.S. equity index futures are in retreat following a rebound on Wall Street that reversed much of the prior session’s FOMC-driven selloff; the S&P 500 (+1.1% to 7,500) and more so the Nasdaq 100 (+2.5% to 30,406) advanced as chipmakers rallied on optimism surrounding partnerships (see Stocks below); Treasury yields fell back a bit across the curve, and market pricing (CME’s FedWatch) via majority sees a rate hike in September and roughly a coin toss on a second one in DecemberStocks:- Intel (+10.6%) surged after President Trump announced a partnership between it and Apple (+0.7%) to design and build chips in the U.S., lifting the semiconductor complex including Nvidia (+3%), AMD (+4.9%), Micron (+8.7%), Marvell (+7.3%), Lam Research (+4%), and Applied Materials (+4.1%)- SpaceX (-3.6%) extended its post-IPO pullback; Arete initiated coverage with a buy, and it got investment-grade credit ratings from Moody’s, Fitch and S&P Global Ratings each giving it a “stable” outlook, with an unconfirmed report saying SpaceX to talk to investors next week about a bond offering of at least $20bn- Amazon (+2.9%) retook its spot in the market cap leaderboard from SpaceX (-3.6%); ecommerce giant could start selling its custom AI chips to other companies- Falling oil prices following the MoU boosted travel-related names including Carnival (+3.2%), Royal Caribbean (+3.7%), and American Airlines (+3.7%) while hurt energy stocks like Exxon Mobil (-2.1%), and Chevron (-2.2%)- Kroger (-8.4%) in for a rough drop after narrowly missing earnings expectations, with Steel Dynamics (-7.5%) also down after disappointing Q2 earnings guidance- Shares of Pfizer (-2.7%) closed notably lower as its CFO will step down- Nasty session for shares of Accenture (-18%) after announcing approximately $4.2 billion of cybersecurity-related acquisitions- Meme Stock Movers: Kohl’s (+4%), Krispy Kreme (-4%), AMC (+6.6%), BlackBerry (-5.1%), Nokia (-2.5%), Avis (+4.2%)- Crypto stocks were in for a mixed session: Coinbase (-1%), MicroStrategy (-3.5%), Mara Holdings (+2.2%), Gemini Space Station (-1.5%), Bullish (+1%), Circle Internet Group (-0.5%)Commodities:- Gold came under renewed pressure following the hawkish Fed hold, slipping below $4,150 as the stronger dollar and rising rate hike expectations weighed on the non-yielding metal priced against the greenback; silver is also in retreat falling into the $63 handle, underperforming against gold and as a result taking the gold/silver ratio to almost 65- Oil prices (WTI) went for another intraday dip but managed to recover back to above $75 in all on track for another weekly decline as the MoU and end of blockade from both parties keeps the energy commodity’s price in retreat, though inventories remain tight and a full normalization of flows is likely to be gradual; weekly rig count data out of Baker Hughes shows number of US oil rigs was unchanged at 433; VP Vance warns Israel against further attacks in Lebanon and that the 60-day window started on ThursdayFX/Central Banks/Crypto:- Bitcoin remains under pressure and breaks beneath $63K as firmer rate hike likelihoods and a stronger dollar take their toll, with Ether below $1.7K- US Dollar Index jumps back into the 100 handle as markets priced in more aggressive rate hikes out of the Fed and sooner, as well as economic data that has generally remained strong and more so from a relative standpoint; USD/JPY pushes above 161 and reached highs unseen in nearly two years as traders continue to await intervention after a policymaker threat- Bank of England held on rates at 3.75% in a 7-2 vote as two members (Pill and Greene) voted for a hike; that they’re “monitoring the situation very closely” as the “impact on the economy and inflation will depend on how long energy prices stay raised”- Swiss National Bank held rates at 0% as expected; Chairman Schlegel that they’re willing to act against “rapid and excessive appreciation” of its currency- European Central Bank’s Lane hints at higher rates saying that the eurozone may be able to withstand somewhat higher interest rates and that the upper end of the neutral-rate range has risen to 2.5%, Kocher expects inflation to stay higher for some time despite the agreement, and Escriva that higher energy costs are increasingly passing through to services and transport while uncertainty around inflation and second-round wage effects remains elevated- Bank of Japan’s April meeting minutes show policymakers still favor gradual normalization but want more time to assess Middle East-related risksCapital.com Client Sentiment:- Indices: Price gains sees longs unwind in the S&P 500 (from a heavy buy 73% yesterday to 70%), Nasdaq 100 no longer in heavy long territory (at 56% from 67%) and so too the Russell 2000 (58% from 66%); elsewhere also falls out of heavy buy in the DAX 40 (59% from 66%), reaches extreme long in the FTSE 100 (78% from 77%), and moves out of slight sell territory in the Nikkei 225 (majority short 56% from 52%)- Commodities: Falls out of extreme buy in gold (75% from 80%) yesterday despite the pullback in price with a drop in sentiment for silver traders as well (from 88% yesterday to 86%) though still extreme long; WTI long traders still looking for an exit as majority buy sentiment drops (from 61% to 55%)- FX: Pushes further into heavy buy territory in EUR/USD (67% from 65% yesterday) following the pullback in price while holds in GBP/USD (heavy long 66%), shifts in USD/CAD on another climb (majority short 55% from a slight buy 51%), and shorts continue to enter in USD/JPY (heavy sell 71% from 69%) anticipating eventual interventionData:- U.S. Philly Fed Index improves to 10.3 slightly beating forecasts; initial jobless claims edge down to 226K not far off 225K expectations, but continuing claims worsens to 1.81m and was worse than anticipated- UK unemployment rate in April falls a notch to 4.9%; average earnings hold at 3.4% excluding bonus and 4.4% including- Japanese CPI in May rises to 1.5% y/y for headline, holds at 1.4% for core CPI, and a notch lower to 1.8% for ‘core core’Today:- U.S. holiday (Juneteenth)- German PPI and UK retail sales (10am Dubai time)