If you missed our MAC Desk Fed recap yesterday don’t worry, you can click the link right next to this. As expected the Fed cut by 25bp with Powell reiterating his Jackson Hole comments that the risk profile had shifted towards employment downside and the base case that tariffs will be only a one-time shift in prices. At the end of the day the S&P 500 finished slightly lower but right around the levels it was trading at the entire day prior to the Fed event. Treasury yields rose on a sell-the-news move. The FOMC event on the whole was also less dovish than it could have been, more of a pivot towards employment risks rather than a lurch. S&P futures were trading modestly higher in the early morning hours but began to rise further as European markets opened strongly. Treasuries had been reversing yesterday’s decline, with yields down 2-4bp across the curve, but have turned again following solid weekly claims and Philly Fed data. Claims, which jumped last week and stoked the flames around a deteriorating labor market, reversed all of that move and more. The Philly Fed manufacturing index improved sharply from last month. Current new Orders and shipments rose while prices paid and received fell. Futures moved a little lower following the data and are weakening more as we near the Open, but still up. The big corporate news was Nvidia’s $5B investment in Intel. Intel is ripping ~30% in the pre-market, taking other semi names higher. Brent crude is higher, gaining after the EU announced it is planning to present its latest package of proposed sanctions on Russia soon. Metals are mixed with gold retreating back to ~$3700 and copper lower as well. Ag is mixed. Bitcoin and Ether are up 1%. The US Dollar index is following up on yesterday’s gains, looking to regain 97. The Euro is trading back towards $1.18 after getting above $1.19 yesterday, while the Yen is weakening back to ~¥148/$ after seeing ¥146 yesterday.

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