A much better than expected improvement in the labor market (unemployment rate down and bigger jump in payrolls) was not at all what the market wanted to see.
The ‘good news is bad news’ narrative is back, tilting attitudes slightly less dovish as the economy is believed to be back on the ascendance as more states ready for reopening.
That sent rates spiking higher…
Real yields are also surging…
And triggered more aggressive selling in stocks, with growth-stuffed Nasdaq leading the way…
The dollar extended yesterday’s gains…
Hopefully we will get a 4th wave, or some other deadly variant to fearmonger about – that should help matters for the markets – as perhaps Newsom’s double-masking mandate is designed to do just that, reinforce the fear and the need for billions in pork spending.
