Markets were quietly treading water, gently unwinding the value rotation when this headline hit:
Senate Majority Leader Mitch McConnell, R-Ky., has agreed to resume negotiations with Democrats over a potential new Covid-19 bill as cases continue to surge around the country, Sen. Chuck Schumer, D-N.Y., said on Thursday.
“Last night, they’ve agreed to sit down and the staffs are going to sit down today or tomorrow to try to begin to see if we can get a real good Covid relief bill,” the minority leader said during a press conference in New York.
“So there’s been a little bit of a breakthrough in that McConnell’s folks are finally sitting down and talking to us.”
However, Politico's Sherman highlights:
"Republicans are describing the meeting this afternoon as being about government spending ahead of the Dec. 11 deadline while "Democrats are describing the meeting as being about Covid relief/government spending."
The algos didn't care about the latter and were insta-bid...
The dollar was dumped at the same time...
Is the market seriously this utterly desperate for some stimulus, any stimulus? It appears so.
As one trader commented succinctly and accurately: "This is Impossible to do something rational in this piece of shit of a market "