US stocks dump and pump as strong data cools Fed-pivot hopes

US equities declined after a record two day winning streak, a volatile and choppy session ultimately ending with the S&P500 down 7.65 points (0.2%)

The Nasdaq (NDX100)  saw the biggest swing, from down almost 2.5% at the European close, all the way back up to +0.5% until a very late session sell-off saw it finish down 0.25%

The choppiness reflected the see-sawing of narrative regarding a Fed pivot, or being less aggressive in their rate hiking cycle, this narrative is changing from news release to news release, with weak figures seeing the Fed pivot narrative on, strong figures seeing it off. With robust employment data and PMI figures out of the US before Wednesdays session, the Fed pivot narrative moved towards the off side causing the whipsawing we saw in risk assets.

In FX, the Pound’s 6 day winning streak screeched to a halt, dropping 1% against the USD as traders piled back into the dollar on bets that the Federal Reserve will stick to hiking interest rates.

Oil prices rallied once again on the back of the OPEC+ production cut, a move that the Whitehouse has angrily called “short sighted” US Crude back (USOUSD) above $88 a barrel, another factor that will more than likely see inflation figures from the US remain sticky, giving the Federal Reserve more reason to stay the course of their rate hiking cycle.

Bitcoins (BTCUSD)  low volatility grind up continued, BTCUSD has shown a real de-coupling from tech and USD strength recently, making it’s own path and displaying strong support in the 19000-18000 zone.

Todays scheduled economic announcements: