Stocks & Bonds Slammed As Dimon Warns "Brace For Economic Hurricane"

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by Tyler Durden
Wednesday, Jun 01, 2022 - 02:44 PM

US equity and bond markets just lurched lower (in price) and the dollar spiked higher as a combination of headlines hit.

Put all that together and equities tumbled...

Treasury yields spiked...

With the short-end getting hammered, flattening the yield curve...

And the dollar surged...

For now most desks are focusing on Dimon's comments and the potential 'worsening' of them in the last week:

"You better brace yourself,” Dimon told the roomful of analysts and investors.
“JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet.“

At a previous conference, he called those risks "storm clouds," now he's saying

"It's a hurricane. That hurricane is right there, down the road, and coming our way. We don't know if it's a minor storm or if it's a Superstorm Sandy."

Dimon's comments follow Wells Fargo’s CEO warning this morning that higher interest rates mean the economy has to slow, and that a soft-landing scenario was hard to achieve.

Finally, we also note that Fed's Bostic walked back his September "pause" comments, clarifying that this is in no way meant to be a "Fed Put".