Stocks, Bonds, & Bullion Slammed As Powell Pivots "Transitorily" Hawkish
(Volumes picked up on the release, GOld got smacked, no surprise there really)
DOW
Volume 293,333,602
Avg. Volume 295,462,295
NAS
Volume 2,013,921,588
Avg. Volume 2,206,768,524
SP500
Volume 2,198,483,983
Avg. Volume 3,580,074,590
Despite his best efforts, Fed Chair Powell managed to spoil the party with his use of one of The Fed's favorite words - "transitory" - signaling that expectations for rate-cuts predicated on inflation staying low are perhaps not as set in stone as the market believes.
The hawkish tilt was very evident in the market's implied rate-change pricing.
Additionally, Powell commented on "elevated (but not extreme) asset values."
If Powell is so sure the decline in core inflation is transitory, why wasn't this mentioned in the press statement?
— David Rosenberg (@EconguyRosie) May 1, 2019
The Dollar spiked, and bonds, stocks, and gold slipped on the "transitory" comment.
VIX and Stocks continue to decouple.
Credit spreads blew out quite notably Powell's "transitory" comments.
Treasury yields ended the day higher…with the short-end dramatically so.
Ugly day for Dr.Copper…and Silver..
Gold pumped initially, then dumped as the dollar spike on "transitory" comments.
(of course inflation expectations is going to make everyone sell gold at a huge rate-fucker's)
Silver snapped below its 200DMA..
Finally, with today's ugliness in ISM, 'soft' survey data has fallen below its 'hard' data.
https://www.zerohedge.com/news/2019-05-01/stocks-bonds-bullion-slide-transitory-fed-tilts-hawkish
https://finance.yahoo.com/quote/%5EGSPC?p=^GSPC
https://www.kitco.com/charts/livegold.html