Stocks are having another strong week as the S&P 500 hit new highs yesterday propelled by robust performances out of mega caps. As the week unfolds, investor attention is keenly focused on the upcoming earnings reports from tech giants, particularly Alphabet and Microsoft, which are slated to release their financial results post-market.

This anticipation is tinged with optimism, as traders hope that the earnings will not contain any substantial negative surprises that could impede the current market rally. This sentiment is further buoyed by expectations that the Federal Reserve, under the leadership of Jerome Powell, will maintain its accommodating monetary stance in its forthcoming interest rate announcement and commentary on Wednesday

In fixed income, the 10-year treasury yield is still floating near 4%. Oil remained stable as the market awaited a US response to the attack on American troops in Jordan.

Newton scores are showing more dominance in Large Caps compared to their smaller cap counterparts after the shift began a few weeks ago. On the fixed income side, we are still seeing slight strength out of the short end of the curve and floating rate as the 10-year Treasury has climbed. Beneath the surface, the megacaps are reigning supreme as Communications and Technology are leading sectors. Utilities, Materials, and Cyclicals are the laggards.