US indices started the new month on a negative note. The S&P500 fell 0.75% and the Nasdaq closed down 0.72%, on Jamie Dimon’s ‘hurricane’ warnings, a stronger than expected ISM manufacturing PMI and higher job vacancies than expected, which fueled hawkish expectations from the Federal Reserve (Fed).
The US 10-year yield rebounded above the 2.90% mark, the dollar index gained, as gold dipped below the 200-DMA, $1,842 an ounce, due rising US yields.
Bitcoin, on the other hand, fell as fast as it rose earlier this week as investors’ appetite for risk fell sharply in recent sessions.
And oh, Janet Yellen said she was ‘wrong’ about inflation, because the war in Ukraine was an unexpected event that caused energy prices to skyrocket and spurred inflation, and the Fed started reducing the size of its balance sheet yesterday, and the QT should technically lead to further curve steepening.
On the bank research desk front, Morgan Stanley cut a few big US tech prospects, and Citi said they were selling rallies.
On the data front, today’s ADP report is important, but unless we have a good surprise, it is unlikely to give the market a new direction.
On the OPEC front, OPEC is likely to stick to its plan to increase production and not perform miracles at this week’s meeting, but the Wall Street Journal has reported that it may suspend the OPEC+ agreement with Russia earlier than expected.