What a Day
Not a great combination today as the hangover from the Fed coincides with the seasonally weak part of September. Tech is cracking and other strong sectors are also rolling over. IPO’s are back below their IPO price which is not a good sign just when the gates started to open up. The Government shutdown seems to be just noise again but the media is catching up on the news which is another negative headwind. The 2year Yield made a new multi-year high but has since sold off from the highs. Higher for longer and wants to get to 2%. The hope of a soft-landing with the potential to raise if needed is still the message from the Fed and that’s what we are gonna hear from tomorrow onwards as the black out period ends. The Bank of England & SNB both didn’t hike when they were expected too which was a bit of shock to the market.. Are peak rates in now across the globe? Vix continues to rally and briefly broke the downtrend line from march highs.
Some observations from the day…