Mouse-House Mullered, Banks Battered, But Mega-Cap Tech Turbocharged

Tyler Durden

China wasn’t pretty overnight, and then domestically, ugly jobless claims and cooler than expected producer price inflation offered some dovish hope (inflation weaker and growth weaker = less need for Fed tightening) but PacWest pissed in the punchbowl by admitting that 10% of their deposits left the building last week following the FRC take-down and the news about them seeking strategic options.

And regional banks are a wreck…

The latter news dominated the former (which should also have been dovish – increasing the odds of the ’emergency’ cut scenario priced into Fed Funds) but it smashed stocks and bond yields lower (but the dollar higher? which hammered gold).

So dovish, dovish, and dovish… and rate-CUT odds are soaring…

Meanwhile, the debt-ceiling overhang remains with the front-end of the Bill curve utterly insanely dislocated…

Never mind all that… Nasdaq clung on to gains on the day as The Dow and Small Caps lagged…

Alphabet dragged the tech indices higher…

The Mouse-House was a bloodbath…

Before we leave equity land, VVIX is decoupling (to the upside) vs VIX and that didn’t end well the last two times…

Source: Bloomberg

Treasury yields were all lower on the day with the long-end outperforming on the day (2Y -1bps, 30Y -6bps). Yields are all lower on the week with the belly outperforming…

Source: Bloomberg

Despite the dovish headlines, the dollar rallied to one-week highs…

Source: Bloomberg

The South African Rand plunged to record lows after the US accused them of selling weapons to Russia…

Source: Bloomberg

Bitcoin was dumped lower again, falling back below $27,000…

Source: Bloomberg

Gold spiked early then was puked again…because nothing says dump gold like a debt ceiling crisis, banking crisis, and dovish implications for The Fed…