Amid the doldrums of summer liquidity, today saw some give back from Friday's euphoric response to Jay Powell's latest flip-flop.
Rate-cut expectations declined (most notably focused on a shift from 2024 to 2025)...
Source: Bloomberg
Stocks - broadly-speaking - did not love it and gave some back with the Nasdaq the biggest loser (and S&P dragged down by Tech). The Dow managed to reach a new all-time high before purging most of it back.
It's been an interesting couple of days for Mag7 stocks...
Source: Bloomberg
...as the world readies for NVDA's earnings...
Source: Bloomberg
The dollar rallied modestly, erasing some of the dovish decline...
Source: Bloomberg
Despite the dollar gains, gold rallied...
Source: Bloomberg
Treasury yields rose modestly (just 1-2bps), but remain down from pre-Friday panic. The short-end continues to outperform...
Source: Bloomberg
Oil prices also continued to rebound, with WTI back above $77...
Source: Bloomberg
After surging above $65,000 twice over the weekend, Bitcoin was sold (ubiquitously) during the US day session
Source: Bloomberg
...and ETH is now at its weakest relative to BTC since the start of the DeFi boom...
Source: Bloomberg
Finally, while the seasonals are holding up for now, the worst period of the year looms (September H2)...
BTFD to all-time high, then STFR and rest for post-election surge?
