Algos appeared to initially like Powell’s promise to “act as appropriate to sustain the expansion,” but it seems like that was not enough as stocks are giving back kneejerk gains.
Algos ran the stops up to unchanged then dumped…
But bond yields are a one-way street lower…
Source: Bloomberg
Along with the dollar…
Source: Bloomberg
Odds of a 50bps rate cut moved up to 11%.
This is exactly the kind of reaction you’d expect from a market that doubts the Fed will do enough to offset “significant risks.”
via ZeroHedge News https://ift.tt/2TXeTEK Tyler Durden