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Tech-Stocks Suddenly Tantrum As Yields, Rate-Hike Odds Jump

Tyler Durden's Photo
by Tyler Durden
Monday, Nov 22, 2021 - 12:02 PM

Update (1200ET): After Powell's nomination, and a tailing 2Y Auction, it appears a combination of spiking yields and hawkish rate expectations finally triggered a tantrum in stocks.

STIRs are pricing in a full rate-hike by June 2022...

2Y Yields spiked to new cycle highs...

The yield is at its flattest since March 2020...

And Nasdaq and Small Caps suddenly puked...

As market breadth is weakening rapidly...

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As we detailed earlier, the dollar index has spiked following President Biden's decision to re-nominate Jay Powell to run The Fed, as opposed to the more-dovishly-perceived Lael Brainard.

The decision has also sparked a notably hawkish jump in STIRs, shifting the market's expectations for a first rate-hike from July 2022 to June 2022...

And while stocks knee-jerk reaction was higher on "continuity", they are fading as the hawkish shift in rates is perceived...

Get back to work Mr.Powell! The Dems need their scapegoat.

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