In recent days and weeks, we’ve pointed to froth, extended valuations, and complacency as reasons equity markets could correct 5-10% over any given 2- to 3-day span without being a surprise. Will the Fed intentionally come off as less dovish than expected today?
The U.S. jobs picture has certainly deteriorated in recent months and many questions overshadow both the U.S. and Eurozone recovery. This morning, German Ifo Business Climate and Expectations data all fell short of estimates
All 4 major U.S. benchmarks settled at fresh record highs yesterday and each extended its gains ahead of today’s opening bell. Biden’s Presidency is underway and there seems to be a relief rally of sorts.
Sentiment has flipped as traders anticipate Janet Yellen’s Congressional confirmation hearing for U.S. Treasury Secretary before the Senate Finance Committee today. Here, she’s expected to sell Biden’s $1.9 trillion package in order to fast-track it with a 60-vote supermajority in the Senate.
Trump is already out, and the market has shifted focus to President-elect Biden. As a move for impeachment moves forward, the market will likely view it as stealing valuable time away from fiscal talks.