As Bloomberg notes, Treasuries fell and the dollar gained as talk of a tax-cut outline on lawmaker’s desks by September 25 revived hopes for the “Trump trade” amid speculation President Trump is adopting a more bipartisan approach in dealings with both Houses of Congress. Revival of the President’s fiscal agenda overshadowed inflation data that showed producer prices for August rising less than economists’ estimates. Oil advanced after the International Energy Agency said demand will climb this year by the most since 2015 while the S&P 500 Index headed into the close little changed after closing at an all-time high a day earlier. Gold headed for its 4th consecutive losing session as investors favored riskier assets.
Small Caps outperformed on the day amid hope for tax reform (more domestically-oriented) as Trannies underperformed…NOTE the sheer panic-buying algos to get Nasdaq and S&P green into the close…
But of most note was the utter desperation to get the S&P green…
It appears AAPL’s buyback machine kicked in towards the close…
Financials managed to scramble back to their 50DMA…
While stocks are reaching record highs, VIX remains well off its record lows (for now)…
Bond yield continue to catch up to stocks…
Treasury yields backed up further, erasing all price gains since August FOMC Minutes release…
The Dollar Index rose for the 3rd straight day…
Notably today’s shift looks like USD catch up to Bonds’ weakness…
This is the biggest 3-day gain in 9 months…(biggest spike since the Dec rate hike)
Bitcoin tumbled further overnight but bounced back modestly in the afternoon…
Gold prices fell for the 4th day in a row, mirroring USDJPY once again, with a slight bump on Mueller headlines probing social media…
Crude jumped after a big build to one month highs…
and RBOB dropped after a big draw?)
