A quiet day marked by domestic weather chaos, foreign conflict escalations, and tech monopoly turmoil
Today was a quiet macro day, overshadowed by domestic weather disasters, foreign war escalations, and tech monopoly tumult. As the anniversary of the Oct 7 attacks approached, more missiles in the Middle East drove crude prices up, with WTI surpassing $77 for the first time since mid-August (rebounding from three-year lows). Concerns about Gulf refinery impacts from Milton also contributed to the rise in prices.
Source: Bloomberg
Goldman’s Chris Hussey referred to the current situation as the ‘rates-growth tango’, indicating that the payrolls beat has led to a significant increase in yields, which in turn has negatively impacted stocks.
Source: Bloomberg
Expectations for rate cuts are diminishing, with less than two 25bps cuts priced in by year-end and fewer than four additional cuts expected next year.
Source: Bloomberg
The major US stocks had a rough day, with futures dropping at the European open and continuing to decline as the GOOGL ruling was announced.
Mag7 stocks were affected by concerns surrounding Tesla’s Robotaxi day and the injunction against GOOGL, which mandated the tech giant to open its app store to competition.
Source: Bloomberg
‘Most Shorted’ stocks experienced significant losses today, erasing all gains from Friday’s short squeeze.
Source: Bloomberg
The bond market continued to struggle, with short-end bonds underperforming once again.
Source: Bloomberg
The yield curve briefly inverted once again this morning, with both 2Y and 10Y yields surpassing 4%.
Source: Bloomberg
The dollar remained stable today, fluctuating within a narrow range following Friday’s spike.
Source: Bloomberg
Gold prices remained relatively stable today, experiencing a slight decline.
Source: Bloomberg
Bitcoin experienced significant price fluctuations today, reaching $64,500 before being impacted by negative news surrounding GOOGL, which also affected the cryptocurrency market.
Source: Bloomberg
Despite ongoing concerns, USA sovereign risk continues to rise steadily.
Source: Bloomberg
It’s worth noting that the surge in global perception of Washington’s vulnerability and the prevailing narrative about Kamunism’s success may be correlated, although such a connection may be viewed as racially biased.
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