‘Powell Put’ Sparks Surge In Stocks, Bonds, & The Dollar; Bullion & Black Gold Flat On Week

Positive macro, central bank love-fest, and AI catalysts… buy all the things…

US Macro ‘outperformed’ expectations this week amid more pro-cyclical data points…

Source: Bloomberg

…which combined with a dovish tilt by Powell (which lifted 20-24 rate-cut expectation)…

Source: Bloomberg

…and positive AI catalysts…

Source: Bloomberg

Put this all together – rates, growth, and secular momentum –and it is perhaps not surprising that stocks have reached another all-time high in the US.

Led to a solid week for all the majors with Nasdaq outperforming…

The S&P 500 trades at a 2025 P/E of 20+.

So the question may simply be: can the rates/growth/secular innovation dynamic be sustained long enough to allow corporate earnings to grow into the current market’s valuation?

Shorts were aggressively squeezed Wednesday an Thursday…

Source: Bloomberg

Treasury yields ended the week lower, including the long-end (-4bps), but the short-end outperformed (-13bps)…

Source: Bloomberg

Which left the curve (2s30s) stepper on the week….

Source: Bloomberg

The dollar roared back to six week highs this week…

Source: Bloomberg

Bitcoin ETFs saw large net outflows this week…

Source: Bloomberg

And that weighed on the underlying with spot bitcoin back at $64,000…

Source: Bloomberg

Gold ended the week around unchanged, despite a hige spike intraweek to a new record high…

Source: Bloomberg

Crude prices ended the week unchanged, roundtripping from the early week gains…

Source: Bloomberg

And finally, this is not good news for Biden and his biddies…

Source: Bloomberg

Pump prices are heading up… and Biden’s approval rating down at the sane tune.