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There weren’t many dark clouds in the March non-farm payrolls but the market increasingly sees strong economic data as Fed put, rather than something that will lead to cuts. The market has decided that it can tolerate Fed funds at 5.25-5.50% and so long as rates don’t rise, delaying rate cuts isn’t a big deal. And no Fed officials are talking about more hikes.
Yesterday’s rout was largely triggered by fears of an escalating Iran-Israel war but the market is having sober second thoughts on that. But even with a 30 point drop today, it’s a big hill to climb to erase yesterday’s declines.
SPX 10 mins