To Pause or Not to Pause? That Is the Fed Question
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What’s in Today’s Report:
- To Pause or Not to Pause? That is the Fed Question
- Weekly Market Preview – Could Inflation Data Reintroduce Rate Hike Possibilities?
- Weekly Economic Cheat Sheet – Wednesday’s CPI Report in Focus
Futures are tracking global equity markets lower this morning with rate-sensitive small caps and tech shares leading declines as bond yields continue higher on the back of Friday’s “hot” jobs report and new highs in the price of oil.
There were no economic reports overnight, however, the U.S. announced new curbs on AI-chip exports (specifically NVDA chips) which is pressuring mega-cap tech stocks in pre-market trade.
Today, there are a limited number of market catalysts as there are no noteworthy U.S. economic reports on the calendar and no Fed officials are scheduled to speak.
There are two Treasury auctions at 11:30 a.m. ET today (for 3-Month and 6-Month Bills) and given the hawkish reaction to Friday’s jobs data, their outcomes could impact stocks. Bottom line, if Treasury yields hold pre-market levels with the 10-Yr and 30-Yr both approaching 5%, stocks will have a very difficult time stabilizing today.
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