Stocks Give Up Post-FOMC Gains; Dollar, Bond Yields Surge

Obviously, today's market was all about the Fed. some brief stop-running early on took out yesterday's highs only to fall back before Yellen... then the fireworks began. The initial kneejerk reaction was to sell stocks, sell bonds, and buy USDs. Then came the re-reaction - VIX was slammed below 12, the S&P 500 surged to near intraday record highs, bond yields accelerated higher, EUR and JPY weakness sparked USD bid, and PMs slipped lower as Yellen meandered uncomfortably through a two-faced press conference. By the close, the USD had hit fresh 4-year highs (USDJPY over 108), stocks had roundtripped to unchanged from FOMC, Treasury yields were notably higher, VIX back over 12.5, Trannies surged.

 

From the FOMC Statement, stocks dumped, pumped, and dumped

 

And from Hilsenrath's hint yesterday... Trannies are exploding...

 

and Builders surging after this morning's NAHB hopefest... Energy red post Hilsenrath... (with Health care the best performer post FOMC)

 

The S&P 500 smashed to near-record highs, then faded back to 2,000 (and bounced)

 

VIX dumped below 12 to help stocks... then gave it all back...

 

Across the major asset classes today...

 

On the week, Treasuries are now all higher in yield, led by 30Y

 

but stocks decoupled from bonds into the close... as they realised bonds' hawkish reading of the fed...

 

The USD surged to fresh 4-year highs

 

USDJPY broke 108... but stocks decoupled from carry into the close...

 

which might be worrying Abe as he is not getting the Nikkei benefits he needs to keep the Abenomics dream alive - and a collapsing JPY could simply be mass capital flight...

 

which pushed commodities lower in general...

 

Charts: Bloomberg