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
TSLA pushed back above $500BN market cap this week and Alphabet soared above $2TN market cap for the first time ever…
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’.
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