US Open

S&P futures are +1.3%, helped up by Nvidia's (A1,A+) (+13%) 4Q & guidance beats which has dragged peer AMD (+6%) with it - again these are equity not credit heavyweights but positive AI outlook did see S&P come with a upgrade to AMD's outlook yesterday (to positive) & has helped broader risk sentiment up - €IG basket is + 0.5% underperforming Stoxx (+0.8%) on Tech's moves but still broad based gains with exception of Consumer staples that are being dragged on by weak guidance from high-grade name Nestle {NESN SW Equity}.

Equities pushing through highs & credit through tights will continue buffering rates pass-through to Financial Conditions. Despite a ~+50bp rise in US belly rates YTD, FI conditions have stayed close to last yr's lows. Again risk from easing FI conditions mentioned in Fed minutes but headline take remained at conditions tight/above pre-hiking cycle levels.

Belly euro rates are yet to diverge from US rates YTD - yet we have seen strong outperformance from €IG driven by BBB's & extending down to outperformance across HY buckets. The divergence is not one that's reflected in our equity baskets or in CDX/Main spreads. Support may be coming from lower supply & reversal of underperformance from late last yr's rally.

Weekly claims is the only print that stands between the strong/~record high equities open - there was little signs of weakness in last weeks reading and consensus is not looking for any significant change in that narrative today. S&P PMI's at 2:45pm/9:45am the focus for rates today, permanent voter Jefferson that follows 15min later the focus in Fed speak.

CDX opening -1/-5 tighter, €IG cash still skewed firmly tighter.