Stocks Drop As Rate-Hike Odds Pop After Powell’s Brief Message

While reactions to Fed Chair Powell’s 8 minute message are varied, the markets’ response seems sure – hawkish-er than expected…

The odds of a 75bps hike in September are back above 60%…

The short-end of the yield curve is spiking relative to the long-end…

The yield curve is flattening/inverting even further…

And stocks are sliding fast on the not-dovish-enough message…

The dollar is higher post-Powell…

But the question is – will this hawkish/recession-implying reaction hold in these illiquid markets?