Tech Wrecked, Banks Battered, & CAT Crushed As Rates Rout Spooks Stocks

Weird day... but not as weird as this...

It appears that surging bond yields finally spooked stocks enough to carry-through...

And bears were rescued...

As stocks plunged...

 

The Dow is down for the 5th day in a row - the longest losing streak since March 2017.

 

The S&P tested back down towards its 200DMA...

 

And The Dow and S&P are back in the red for 2018...

 

CAT's "high water mark" comments crushed it and dragged The Dow down...

 

The FANG Index appears to be making an ominous head-and-shoulders pattern...

 

FANG-style stocks were all monkey-hammered...

 

And FANG bonds were hit...

 

Big Bank stocks were a bloodbath...

 

But notably Small bank stocks are significantly outerforming the broad small caps market despite the flatness of the curve...

 

And as crude started to slide after Macron's comments, so Breakevens tumbled and they dragged stocks down...

 

Despite the stocks slump, the odds of 4 rate-hikes in 2018 (including the one from March) is surging...

 

The Treasury market was mixed today... with 30Y Yields jumping

 

But 10Y managed to top 3.00%...

 

And the yield curve reversed steeper this afternoon, back to unch on the month...

 

The Dollar Index rolled over modestly today...

 

And we notes that HKD was weaker, heading back down to its peg band lower limit...

 

Cryptocurencies continued their rise from pre-tax-day ashes with Bitcoin Cash leading the day...

 

Commodities were mixed with PMs higher (weaker dollar) and WTI lower ahead of tonight's API data (following Macron's comments on a new Iran deal)...

 

And finally, in case you were wondering why there was no dip-buying, no rescue, no new highs... the answer is simple - no buybacks...

 

Bonus Chart: There Is An Alternative... US Treasuries now offer the biggest yield advantage over US stocks since mid-2008

 

Bonus Bonus Chart: Americans are giving up on stocks...

Gluskin Sheff's David Rosenberg sums it all up nicely:

"I don’t know about anyone else, but I find it humorous that the stock promoters on bubblevision who told us heading into the peak that valuations don’t matter are now talking about how cheap the equity market is!"