The recent CPI data, which came in hotter than expected due to rising food costs, along with disappointing jobless claims figures impacted by Hurricane Helene, are signaling a potential return of stagflationary pressures…
Source: Bloomberg
This led to initial chaos in various asset classes, affecting rate-cut expectations for 2024 and 2025…
Source: Bloomberg
Stocks closed lower, with Small Caps experiencing the most significant decline, despite a late surge towards the end of the trading day…
NVDA remained stable amidst the market turbulence…
As volatility rose, especially decoupling from stock movements, ahead of key events like the TSLA robotaxi launch and upcoming economic data releases…
Source: Bloomberg
The Treasury market showed mixed results, with short-term yields outperforming long-term yields…
Source: Bloomberg
This resulted in a significant steepening of the yield curve, reversing the flattening trend seen after the latest jobs report…
Source: Bloomberg
The dollar continued its rally for the 8th consecutive day, reminiscent of the period when The Fed began raising rates in April 2022…
Source: Bloomberg
Despite the dollar’s strength, gold prices also saw gains today…
Source: Bloomberg
Bitcoin prices dropped towards the end of the day, falling below the $60,000 mark once again following regulatory concerns sparked by an SEC lawsuit…
Source: Bloomberg
Oil prices rebounded strongly today after a couple of bearish sessions, with WTI surpassing $76 once again…
Source: Bloomberg
Lastly, the conflicting movements in longer-term inflation expectations versus short-term yields highlight the uncertainty in the market, with traders speculating on potential rate cuts despite inflation concerns…
Source: Bloomberg
Bloomberg’s Sebastian Boyd pointed out that the mixed data suggests traders are grappling with the idea that while inflation remains a concern, a potential weakening in the labor market could prompt The Fed to proceed with rate cuts.
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