All the US equity indices extended their 4 day losing streak today as the US economic numbers continued to beat expectations.
S&P500 -1.64%
Nasdaq -2.03%
Dow -1.67%
Russell 3000 -2.11%
The US Flash Services PMI came out at 50.5 as opposed to a forecast of 47.3 and previous of 46.8. The so called ‘good news’ conundrum continues as analysts are now expecting rate hikes to continue, probably aggressively, due to the slew of positive economic numbers coming out of the US. Inflation is once again a driver in the markets.
All this was in line with some of the projections we made in our previous report, which highlighted the possibilities that are now playing out.
Volatility (VIX) spiked up sharply by +14.34% and the effect was seen in the sharp drop in the negatively correlated S&P500 (SPX). Bonds also nosed higher with US 10year treasuries yields gaining +2.97%.