China Pours Cold Water On Deal "Progress" After Pence Postpones Speech

Update (1140ET): That didn't take long.

Just a few minutes after Pence sent stocks back toward ATH, Beijing and Washington are pouring cold water on the prospects for a trade breakthrough next week, with one of Beijing's favorite mouthpieces (Global Times editor Hu Xijin) warning that Beijing will demand full concessions from the US.

Of course, we already know that Washington can't allow this to happen without looking weak.

Meanwhile, Washington isn't doing much to placate Beijing - in fact, it's doing the opposite. The Commerce Department on Friday announced it would be adding five other Chinese entities to the blacklist that Huawei will soon be joining.

The Pence spike has now been erased.

Stocks

The newly blacklisted entities include Chengdu Haiguang Integrated Circuit, Chengdu Haiguang Microelectronics Technology, Higon, Sugon, Wuxi Jiangnan Institute of Computing Technology.

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US equities and bond yields are rising this morning (exaggerating the quad witch effect) following headlines that VP Pence will postpone his China-bashing speech, saying there are "positive signs of progress" with Beijing.

This is old news of course (as @NorthHeroFX notes so succinctly):

"mkt misreading this speech cancellation as positive -- he already cancelled it once -- he just doesnt want to inflame things are not better just same faded the spoos strength"

But equities decided to price-in the same shit again...

S&P breaking back above yesterday's record highs...

Small Caps remain red...

And yields are rising...

How much higher do stocks go before The Fed's 100% likely rate-cut in July is off the table?