The major averages reversed course and fell into the red on rising oil prices and rising tensions in the Middle East even as the U.S. and Chinese officials agree on a framework for tariffs and trade going forward.

The US and Chinese framework includes China exporting rare earth minerals while the U.S. will roll back restrictions on the sale of advanced technology to China.

Tech in general had a good week on hopes of a rollback in technology and chip sales into China. Today the sector is under pressure. Microsoft was modestly higher on an upgrade. Broadcom and IBM were both up over 1.75%.

In the defense space, Lockheed fell 4% as the Pentagon reduced orders for the F-35 fighter plane.  Raytheon has been higher on new contracts.

The 10-year Treasury yield dropped 6 basis points to 4.12%. The 2-year yield  fell more than 5 basis points to 3.94%. The 30-year yield declined 1.4 basis points to 4.92% on tame inflation data.

In the afternoon the price of oil rose 4% to a one month high on increase tensions between the US and Iran as President is not confident of a nuclear deal. The US is also withdrawing non-essential personal from their Iraq embassy. Gold was higher as well while bitcoin fell a percent.

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