TLDR

We started the day with good news via $TSM reporting June revenue up 6.2% MoM and 68% YoY, another strong data point for the semiconductor cycle. It quickly went down from there. The theme of the day was to sell everything.

Fundamentals remain strong, but the prospect of higher inflation -> rate hikes is worth monitoring.

Equities

Everything is down. Unsurprisingly, tech and AI led the sell-off with SOXX down almost 5%, Nasdaq down ~2%, and the equal-weighted S&P 500 faring the best basically flat on the day.

A 40% jump in volume on $XLK is pretty big - the$XLE jump is to be expected given the circumstances.

Options

The options market still looks okay. The put/call ratio and VIX both look okay; however, they're not great leading indicators.

Rates & Spreads

10 year treasuries jumped 5.5 bps.

Commodities

WTI is up 9.2%.

Macro

More war and Fed's Waller says rate hike may be needed if core inflation stays hot.