Why are Real Interest Rates Hitting Multi-Year Highs?

What’s in Today’s Report:

• Why are Real Interest Rates Hitting Multi-Year Highs?

Futures are slightly higher despite negative geopolitical and AI related earnings news overnight.

Iran launched a surprise missile attack on U.S. forces in Jordan threatening current ceasefire progress (oil is up 5% on the news).

SK Hynix earnings missed expectations and the stock dropped 8%, although the “rest” of tech was solid.

Today should be a busy day full of potential market moving catalysts, starting with the FOMC Decision, where no change is expected but a hike is possible.  Geopolitically, ceasefire progress is in jeopardy given Iran’s surprise attack but, for now, markets remain optimistic it won’t be derailed (oil is only up 5% and it’d be higher if markets feared escalation).

Finally, on earnings, two of the hyperscalers report this afternoon, MSFT ($4.21) and META ($7.13) and markets will want to see strong revenue growth and controlled cap-ex increases.