U.S. equity benchmarks shook off a brief bat with reinvigorated volatility yesterday morning. After a blowout MoM May Retail Sales read, price action in the S&P 500 surged to its high of the session (YoY was -6.1%)
Corn futures caught a bid in the back half of last week’s trade but remain mostly range-bound while Soybean futures had their highest close since late March.
U.S. equity benchmarks opened sharply lower Sunday night and the weakness continued into Europe’s open after a slew of weaker than expected economic data from China.
Risk-assets are keying off a reality that has been clouded by trillions upon trillions of added liquidity. The Federal Reserve’s balance sheet has now surpassed $7 trillion.
Despite the Nasdaq-100 achieving a fresh record and the S&P 500 gaining nearly 50% over this time, we foresee the Fed holding ground as the aftermath of Covid-19 plays out.
