Gold, Stocks, & Bonds Jump As 'Bad' Jobs News Reignites Rate-Cut Hopes

The sudden surge in initial jobless claims this morning was met with a significant across-the-market reaction (amid low levels of liquidity - Goldman noted yesterday was the quietest market day this year).

Rate-cut hopes jumped...

gold stocks bonds jump as bad jobs news reignites rate cut hopes

Which sent bond yields lower...

gold stocks bonds jump as bad jobs news reignites rate cut hopes

...and stocks higher...

gold stocks bonds jump as bad jobs news reignites rate cut hopes

The dollar dropped...

gold stocks bonds jump as bad jobs news reignites rate cut hopes

...sending gold higher...

gold stocks bonds jump as bad jobs news reignites rate cut hopes

This level of 'data dependence' in an illiquid market will not end well.

Authored by Tyler Durden via ZeroHedge May 9th 2024