A narrative of ours is that “markets don’t like uncertainty.” In fact, we’re very bullish equity markets from these levels after the election, because regardless who wins there is either some certainty or less uncertainty coupled with accommodative Federal Reserve policy.

Price action is peeling back a bit ahead of the open after achieving the feat and the Nasdaq-100 index is about 0.75% from its overnight high. Flash PMI data out of Europe this morning was mixed.

Today’s news is a great example as to the market paying attention to the headlines it wants; something we often discuss. If stocks haven’t already been vulnerable, or in a healthy correction pattern, we may not be seeing such damage across the banking sector weighing on the market broadly.

Tesla, arguably, has been the barometer of irrational exuberance. The stock was pointing lower by 15% ahead of the bell today.

Although our goal was never to pick the exact top, the timing of our warning was perfect. Furthermore, we wouldn’t be surprised to see U.S. benchmarks pare the bulk of yesterday’s losses and finish the week on a strong note.

If you’ve lived in a bunker since April, then you may have missed the memo; the USD has been the sacrificial lamb for not only buoying the economy, but the stock market.

Despite the market broadly trying to pullback yesterday, the Nasdaq-100 index gained 1% and was tacking on another 1% ahead of the bell. Upon their splits, Tesla gained 12.5% and Apple 3.3%.

U.S. benchmarks were broadly better ahead of the bell with 2 largely anticipated stock splits in focus. Apple will split 4:1 and Tesla 5:1.

The S&P 500 extended its record run overnight, trading to 3509.50. Fed Chair Powell delivered all that was expected yesterday, announcing Average Inflation Targeting.

Analysts expect Powell to announce the committee’s policy shift to Average Inflation Targeting. We discussed the concept earlier this week. It is as it sounds; inflation has run below the Fed’s 2% target for an extended period.