Stocks Slump, Bonds Pump’n’Dump, Crypto Jumps On Jobs & Jawboning

The bond market should take the headlines today after a wild ride driven by weak jobs data, very mixed Services survey data (ISM record high, PMI 6mo low), and hawkish chatter from Fed Vice-Chair Clarida, which sounded a lot like this…

For all the chaos, the long-bond ended unchanged and the belly only around 1-2bps higher after being bid following the European close…

Source: Bloomberg

The 10Y yield swung wildly, but notice in the chart below that it appears to have traded in a very technical range defined by July 20th’s pump’n’dump…

Source: Bloomberg

Small Caps were today’s biggest loser (just take a look at the volatility intraday in that index – red arrows) while Nasdaq was alone in managing modest gains. The Dow ended down around 0.8%…

The S&P 500 remains glued around its key Gamma level of 4400…

The WSB crowd were in action today with MRNA, HOOD, and AMD all soaring on ‘attention’ from the Reddit Rabble…

HOOD exploded higher, helped by a ‘gamma squeeze’ as options started trading…

AMD shot higher…

And MRNA

Tech outperformed – the only sector to end green – while Energy tumbled…

Source: Bloomberg

Defensives were bid this afternoon as Cyclicals sold off further…

Source: Bloomberg

The dollar dumped and pumped today also…

Source: Bloomberg

Dropping to 6-week lows on weak jobs data before spiking on Clairda’s hawkish comments…

Source: Bloomberg

Also of note is the huge technical support that the dollar bounced off today…

Source: Bloomberg

As bonds swung wildly around, so did gold…

Oil prices tumbled once again as demand fears grew over the spread of Delta in China among other places. WTI tumbled to a $67 handle…

Finally, while other assets swung around today, crypto was one-way… higher. Bitcoin pushed back up towards $40k…

Source: Bloomberg

And Ethereum topped $2700…

Source: Bloomberg

And all the hawkish chatter from Clarida and Waller has pushed market expectations modestly higher today…

Source: Bloomberg