Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets in the day ahead. Today is Friday, Aug. 25.
State of Play
The tech rally we spoke of yesterday morning didn’t last long. It reversed almost as soon as markets opened. Eventually all major US indexes dropped by 1% or more. Now the focus turns to Jackson Hole, Wyo. and one Jerome Powell. As of 0620 all is pretty quiet:
Stock index futures are pointing to gains led by small caps. The Russell 2000 is up 0.4%. S&P 500 (SPY 0.00%↑) and Nasdaq (QQQ 0.00%↑) up a little less;
Commodities are showing signs of life, with WTI crude oil up 1.4% to trade around $80/barrel and copper up 0.8%;
Cryptos have resumed their drop, with Bitcoin down 1.5% to trade around $26,100;
Bonds are selling a bit, with the yield on the 2-year up 2 basis points to 5.04%, which appears to be a multi-decade high, and the 10-year up 2bps to 4.25% (yields move inversely to prices).
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