US equity indexes closed broadly weak, SPX -30pts (0.8%) at 3910. Nasdaq comp' -1.1%. Dow -0.9%. The Transports settled -1.8%.
SPX - daily5
VIX - daily3
Summary
US equities opened on a choppy... if weak note, and remained that way into the early afternoon.
Meanwhile...
Dallas Fed Governer Kaplan was touting CPI to max out at 2.25-2.50% this year, before 'settling back' in 2022. It remains the case that Print Central is the least reliable when it comes to any type of economic forecast. A random number generator (such as perhaps what the BLS use for employment data) would be better?
What if CPI climbs above 3.5% (which is my threshold for raising rates) this summer? Oh yeah, the Fed will just deem it 'transient', and maintain the ongoing madness of ZIRP.
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The afternoon saw the SPX cool from 3947 to 3901, and settling at 3910. Whilst some might argue it was due to Powell/Yellen comments - in testimony to the US political hacks, its arguably mostly just s/t cyclical factors.
Volatility picked up, with the VIX settling +7.5% to 20.30.
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| A glimpse of summer 2021 |
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| A fine spring day |
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| Full moon will be March 28th. |
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| A little closer |
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Goodnight
from London
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