• US Treasury yields rose across the curve, especially the 1M Treasury, which surged +7 bp (3.08σ). • Aluminum prices plummeted -8.45% (6.92σ), driven by recession fears and energy cost pressures. • Globally, equity markets saw gains, with technology leading the way as investors reacted positively to growth data. --- **Recommendations** • Consider adding to technology sector exposure as it outperformed with a +2.71% gain, tied to growth expectations. • Explore shorts in aluminum as market fundamentals deteriorate and global demand expectations wane. • Monitor US Treasury yield movements closely for potential volatility ahead of next week’s inflation data. --- The session ended positively for equities, with major indices rallying amid a backdrop of rising Treasury yields and significant movements in commodity prices. The S&P 500 rose +0.37%, supported by strong performances in the technology sector which gained +2.71%. Notably, the Russell 2000 also showed solid gains at +0.91%, reflecting a growing appetite for risk among investors. However, the most striking news came from commodity markets, particularly aluminum, which plummeted -8.45% amidst challenging demand prospects; a decisive move bringing about significant shifts in the supply chain dynamics, as highlighted by reports of falling output due to high energy costs, strengthening the bearish sentiment around the metal. On the economic front, today’s economic calendar featured mixed data points, such as the real GDP figure reported at a solid 3.52%, as per the Atlanta Fed’s GDPNow estimate. This signals that growth remains robust, albeit at an elevated risk of inflation potential given the strong output. Additionally, consumer sentiment remained flat at 48.2, in line with expectations but may indicate consumer wariness as spending trends evolve. These factors could maintain pressure on the Fed to adjust rates if inflation continues its upward trajectory alongside growth. Treasury yields saw a broad increase, with the 1M Treasury yield climbing +7 bp to 3.72% amid a tightening monetary outlook. The 1Y and 2Y Treasury yields also increased by +4 bp each. The yield curve's steepening indicates a likely reassessment of future Fed rate hikes as inflation persists. Market expectations reflected in the CME FedWatch reveal a gradual implications of the Fed holding steady through the next couple of meetings, with over 90% probability assigned to maintaining the current target range of 3.50-3.75% until at least July. In corporate news, Tesla’s shares rose 1.95% following positive sentiments around its electric semi-truck production ramp-up, while NVIDIA experienced a slight decline of -1.90%. This divergence illustrates investors' mixed views on technology's growth prospects, with Nvidia facing pressures from broader competition and valuation concerns post-earnings season. Today's news cycle indicated a focus on AI and technology resilience, affirming the bullish narrative for the sector. On the commodities front, while natural gas increased by +3.92%, aluminum's sharp decrease highlights the core tensions in the energy market affecting production capabilities. Given that aluminum is vital for many sectors, its decline could complicate growth projections and supply chain dynamics moving forward. The implications could be wide-ranging for those involved in manufacturing and construction sectors, demanding investors to reassess their positions accordingly. Overall, despite today's upward bias in risk assets, the tension in commodity markets along with inflationary pressures suggest a cautious backdrop as we move forward. Key upcoming events to watch will involve inflation releases, especially next week’s PCE data, which could recalibrate expectations for Fed policy. Investors are advised to remain vigilant regarding these signals, as sensitivity to inflation could shift market dynamics substantially.