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
But once again we saw huge net inflows yesterday (over $500mm)…
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
And then there’s this… four years ago today, it all started to go pear-shaped…
Four years ago today [March 12, 2020] pic.twitter.com/YvOUNkRfls
— Nicholas Brown (@NicholasABrown_) March 12, 2024
Â
Tyler Durden
Tue, 03/12/2024 – 16:00
Click this link for the original source of this article.
Author: Tyler Durden
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