Stocks & Bonds Soar, Dollar Pukes As Dismal Data Dump Reignites ‘Fed Pivot’ Narrative

A malarkey of ugly data this morning (Services PMI and new home sales collapsing) has reignited hopes for a Fed Pivot – to be signaled by Powell this Friday.

Rate-hike expectations are sliding…

The odds of a 75bps hike in September is back below 50%…

The dollar has dovishly puked…

Stocks spiked, led by cyclicals/growthy stocks…

And bond yields plunged…

Bitcoin and Bullion are also rallying.

This is cornering Powell even more since, as Nomura’s Charlie McElligott noted yesterday, his words have to actually TIGHTEN FCI in order to achieve their “inflation fighting” mandate in order to kill demand.