Solid durable goods data sparked weakness in stocks (good news is bad news), but really ugly recessionary PMI prints prompted the ‘bad news is good news’ reaction in stocks and sent them soaring. But all those gains were erased when Europe closed. Then it was up to The Fed’s Minutes which appeared to confirm the higher for longer ‘pause’ idea that was considered in the actual FOMC statement before Powell pissed in the punchbowl.

Putting it all together, Fed rate trajectory expectations shifted dovishly with the terminal rate falling and subsequent rate-cut expectations rising…

Source: Bloomberg

That helped spur a rally in stocks (led by the longest duration tech names). Nasdaq ended the day up 1%, S&P up 0.5% and Dow up 0.3%…

Keep reading this article on Zero Hedge - Blog.

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