It’s been a long, slow recovery but the S&P 500 is now flat on the day.
The recovery comes as the bond market shrugs laughs off the CPI report. US 2 year yields are now down 11 bps on the day and the Fed funds curve is pricing in more cuts than before CPI.
Maybe that was the market positioning too hawkishly into the data and a heavy slate of Treasury supply. Or maybe the bond market worried about imminent strikes in Yemen and stocks are blindly following bonds.
Whatever the case, stocks have proven to be resilient over the past 10 weeks and that’s tough to ignore.