Traders Fall Back In Love With Stocks & Bonds After Terrible-Tuesday, Bitcoin Breaks Above $50k

A quiet macro day allowed a post-VIXperation market room to do what it does best, ‘sell-vol, and bid stocks’ as the US majors did their best to erase yesterday’s ugliness and VIX puked back to a 14 handle.

Because, well why not… love is in the air…

VIX actually began to puke right after the cash close last night…

The Nasdaq rallied back into the green post-CPI and the S&P 500 got close, Small Caps are still laggards but made up a lot of ground from Terrible Tuesday…

‘Most Shorted’ stocks recovered more than two-thirds of yesterday’s losses…

Source: Bloomberg

Magnificent 7 stocks rebounded but only modestly (only around 30% of the drop from Monday highs)…

Source: Bloomberg

Treasuries were bid today with the short-end outperforming (2Y -9bps, 30Y -2bps), recovering some of yesterday’s losses…

Source: Bloomberg

 Given the exuberance in bonds and stocks, we note that rate-cut expectations barely budged with June still the most likely timing for the first rate-cut…and the market is still pricing in less than 4 rate-cuts this year.

Source: Bloomberg

The dollar gave back some of the gains from yesterday too…

Source: Bloomberg

Gold went nowhere today, stuck below $2000…

Source: Bloomberg

Oil slipped back after a large crude build reported today…

Source: Bloomberg

Bitcoin soared back above $52,000 today for the first time since December 2021…

Source: Bloomberg

As Bitcoin ETF inflows hit a new high since inception (now almost $4 billion since inception)…

Source: Bloomberg

Finally, one more leg higher in NVDA?

Source: Bloomberg

And if NVDA goes, all the king’s horses and all the king’s men fall…

Source: Bloomberg

…that’s too easy, right?