It was an ugly macro week…
Source: Bloomberg
…and worse still, ‘growth’ surprises disappointed significantly while ‘inflation’ surprises surprised to the upside significantly…
Source: Bloomberg
Soaring inflation expectations sent rate-cut expectations to new cycle lows…
Source: Bloomberg
…pushing yields higher across the board (led by the long-end)…
Source: Bloomberg
But, stocks didn’t care about any of that because a handful of mega-cap tech stocks’ earnings were awesome (except META) – and that’s what matters (for now)…
Source: Bloomberg
Nasdaq outperformed, up 4% on the week (its best week since the start of Nov 2023). The Dow was the laggard on the week but all the majors had a decent week…
Not the best week for some observers…
Traders 1: Marko 0 https://t.co/T6PHjRSrMF
— zerohedge (@zerohedge) April 26, 2024
This week saw the biggest short-squeeze since the first week of March…
Source: Bloomberg
And the basket of Magnificent 7 stocks soared over 5% this week, its best week since the first week of November (Fed Pivot) – but it was noisy as TSLA surged, META tumbled, and then GOOGL/MSFT lifted the lid…
Source: Bloomberg
Tech and Discretionary outperformed on the week with Energy and Materials lagging (but all sectors ended the week green)…
Source: Bloomberg
5.00% remains the Maginot Line for the 2Y Yield…
Source: Bloomberg
Interestingly, the dollar ended the week practically unchanged – despite a lot of noise…
Source: Bloomberg
…despite the seventh straight week of declines in the yen vs the dollar as it appears the BoJ and MoF have given up…
Source: Bloomberg
Gold was dumped this week – its worst week since the start of December 2023. Spot prices did find support at $2300 though…
Source: Bloomberg
After two down weeks, oil prices rallied this week, with WTI back above $83…
Source: Bloomberg
Finally, intraday volatility has picked up dramatically in the last couple of weeks…
Source: Bloomberg
…as the distribution of possible rate outcomes has picked up significantly. Don’t forget next week’s QRA and FOMC as Yellen and Powell get ‘back to work’.
Tyler Durden
Fri, 04/26/2024 – 16:00
