Dismal Data Sparks Dollar Dump – Everything Else Rips On Record Week
US Macro Surprise data declined for the sixth straight week… to its weakest since January 2023…
Source: Bloomberg
But that 'bad news’ prompted a run to record highs for risky stocks…
Source: Bloomberg
As the market seems to be completely discounting the collapse in soft survey data…
Source: Bloomberg
The bad news prompted rate-cut expectations to rise on the week (more for 2025 than 2024). Three full cuts priced in for 2025 and two cuts priced in for 2024…
Source: Bloomberg
All of which sent stocks higher on the week led by Nasdaq. Friday saw the majors mixed to flat after a tumultuous week..
In the last few seconds, the algos took The Dow back above 40,000 for its first close above that historic level…
Industrials were the only sector to end the week red while Tech and Financials outperformed…
Source: Bloomberg
The short squeeze at the start of the week faded fast as the week progressed…
Source: Bloomberg
VIX was clubbed like a baby seal back to an 11 handle on the week – decoupling from stocks today…
Source: Bloomberg
Treasury yields ended the week lower, despite the last two days seeing rates rise. The short-end modestly underperformed…
Source: Bloomberg
The dollar tumbled this week, erasing the gains since April’s CPI print surge…
Source: Bloomberg
A big week for bitcoin with the largest cryptocurrency back above $67,000 to its highest in six weeks…
Source: Bloomberg
Bitcoin ETFs saw a solid week of inflows (for a change)…
Source: Bloomberg
Oil prices bounced on the week with WTI back above $80 to two week highs…
Source: Bloomberg
Gold surged to a new record closing high this week, its first close above $2400…
Source: Bloomberg
… but most notably, silver dramatically outperformed gold (topping $30) – its best relative weekly performance since August 2020…
Source: Bloomberg
While The Dow topped 40,000 for the first time, it remains a laggard compared to gold for the last few years…
Source: Bloomberg
Finally, how much longer can the market (and The Fed) ignore the surge in inflation surprise data and just watch the de-growth with blinkers on…
Source: Bloomberg
…hoping that the 'bad news’ is all that matters to lift rate-cut hopes.
Tyler Durden
Fri, 05/17/2024 – 16:00