Yesterday’s optimism has certainly faded.
The market appears to be indicating that problems in the gilt market aren’t solved and when inflation peaks is certainly an open question. Add up the rest of the uncertainty around geopolitics and it’s a sell-the-rips market.
It’s all left an unusual candle formation on the chart. A spike reversal from new lows that continued but also reversed.
The Nasdaq is now a bit below where it was before CPI while the S&P 500 is above.
Next week’s data slate is mostly housing and it’s tough to imagine any kind of shift in Fed rhetoric at the moment. So we’ll have to wait and see what comes in terms of earnings.
Monday morning starts with Bank of America. Notably, JPM shares are up 2.1% today on a brutal tape.