'Bad News' Battered Bonds, Big-Tech, & Banks On The Week; Copper & Crude Rip
An ugly week on the macro side - hotter than expected inflation, slower than expected growth, weaker than expected labor market data...
Source: Bloomberg
...but the inflation issues sent rate-cut expectations reeling (now less than 3 cuts priced in for 2024)...
Source: Bloomberg
And as rate-cut expectations fell, Treasury yields rose... non-stop... all week with the belly of the curve underperforming (5Y yields up 28bps on the week)...
Source: Bloomberg
Yields all ended back up near their year-to-date highs...
Source: Bloomberg
Higher yields were initially shrugged off by stocks but as they kept rising, there was no arguing...
Source: Bloomberg
Small-Caps and Big-Tech were the week's biggest losers...
Banks were not pretty this week as The Fed's BTFP facility expired...
...and liquidity was sucked hard out of the RRP. $108BN drawn down in the last two days to fresh cycle lows...
Source: Bloomberg
Anti-Obesity drug stocks dared to end red...
Source: Bloomberg
AI stocks also pumped and dumped on the week...
Source: Bloomberg
The dollar surged this week - as BoJ chatter picked up - with its best week since mid-Jan (rebounding some from last week's dollar-plungefest)....
Source: Bloomberg
The dollar's gains were gold's losses as the precious metal ended the week down 1%...
Source: Bloomberg
Despite big net inflows this week...
Source: Bloomberg
...bitcoin ended the week only marginally higher (up around 3%), with choppy moves (day-session dips bought overnight), but ened back above $70,000...
Source: Bloomberg
...and ethereum was a little worse, down around 3%, on the week (thanks to Democrats' letter overnight pressuring the SEC on ETH ETFs)...
Source: Bloomberg
NatGas erased most of last week's gains...
Source: Bloomberg
Still there were some bright spots...
Crude surged on the week, breaking out of its range to its highest since early November...
Source: Bloomberg
And as goes crude, so goes wholesale gasoline... and then goes pump prices...
Source: Bloomberg
..but it was copper that really regained its legs, surging up to its highest since Feb 2023...
Source: Bloomberg
Finally, was this week's 'stalling' in NVDA 'the top'?
Source: Bloomberg
How ironic would it be if we saw peak AI just as Jensen unveils his latest and greatest at GTC on Monday?
