Big-Tech Bounces But Hot Inflation Hits Bonds, Bullion, & Bitcoin

It seems Breakevens were on to something...

Source: Bloomberg

This morning's CPI was not at all what the narrative-peddlers wanted to see and that sent rate-cut expectations tumbling...

Source: Bloomberg

...and the timing of the first cut extended (May is now off the table)....

Source: Bloomberg

Treasury yields were higher across the board with very little spread across the curve (up around 6bps on the day)

Source: Bloomberg

Of course, higher inflation, less dovishness in STIRs, higher bond yields are not a good sign for stocks... but that would be in a normal world. But as we highlighted overnight, this market was priced for worse... and so Nasdaq, S&P, and The Dow all surged higher along with bond yields...

Source: Bloomberg

...just like it has been for months...

Source: Bloomberg

Small Caps did suffer... but all the other US majors were up large with Nasdaq leading...

Mag7 stocks bounced strongly to pre-payrolls levels...

Source: Bloomberg

The pre-CPI anxiety priced into VIX was immediately eviscerated...

Source: Bloomberg

The dollar spiked higher on the CPI data but faded back some gains...

Source: Bloomberg

Bitcoin ended lower on the day, but well off its lows after puking down to yesterday's lows and bouncing off $69,000...

Source: Bloomberg

Today saw the third largest BTC ETF volume since inception...

Source: Bloomberg

But once again we saw huge net inflows yesterday (over $500mm)...

Source: Bloomberg

One more thing - total inflows into BTC ETFs just surpassed $10BN since inception. Moreover, IBIT's total AUM will top $15BN today (in 2 months) - it took GLD three years to achieve that level of AUM...

Source: Bloomberg

Gold was clubbed like a baby seal, also erasing yesterday's gains...

Source: Bloomberg

Oil was marginally lower on the day, ahead of tonight's API inventory data...

Source: Bloomberg

Finally, in case you were under any impression that The Fed is still apolitical...

Source: Bloomberg

Powell and his pals are 'allowing' financial conditions to be at their loosest/easiest since before The Fed began tightening... and doing very little, if anything to push back against that market-driven narrative. How do you think this ends?

And then there's this... four years ago today, it all started to go pear-shaped...