Yesterday US equities extended Friday’s losses as long duration bond yields moved higher around the globe. The S&P 500 was down ~1.5% at the lows reversing all of the post-Jackson Hole rally. However, equities moved higher in the back half of the session to cut losses in half. Equities are mostly lower today but some outsized strength in mega caps is masking the general malaise. The S&P 500 is up modestly but the equal-weight is down 0.5% and Russell 2000 down 0.3%. Alphabet and Apple are the primary drivers of the headline strength, up 8% and 3%, respectively following U.S. District Court judge Mehta’s ruling in the government’s anti-trust case against Google. With Alphabet’s strength Comm Services is easily the standout sector today. Energy is underperforming with oil pulling back from yesterday’s gains. Most other sectors are down ~0.5%. Treasury yields were flat to slightly higher around the Open but fell across the curve following the JOLTS jobs report, which included, uh oh, a rather large upward revision to last month’s layoffs and discharges. The 2yr fell about 4bp on the news. The 10yr and 30yr are down 6-7bp, reversing all of yesterday’s increase. The US Dollar Index moved down in tandem with yields, and is currently down 0.3% and bouncing around 98. Commodities are mixed. Crude has been volatile. Brent was down ~2%, giving back yesterday’s gains amidst reports that OPEC+ is considering another production hike at their meeting this weekend. It then spiked around noon on comments from Trump regarding troops in Poland, and possible new sanctions on Russia. Brent eventually fell back to its levels prior to Trump’s comments (-2%). Precious metals are extending yesterday’s rally with gold up 1% breaking above $3,600. Bitcoin is up modestly, back above $112K.

Expand article