Good morning contrarians! It is Wednesday, Sept. 7.
Stocks sold off yesterday, but finished off the lows. The Nasdaq once again saw the worst of it, dropping by 0.7% for its seventh straight day of losses. The S&P 500 was down about 0.4%.
State of Play
As of 0630, we are looking mostly at risk off. Eurozone unemployment just printed a little higher than anticipated and stocks in that part of the world are moving lower. Here in the US:
Stock futures are mixed. The Nasdaq is pointing to modest gains of around 0.2% but the Russell 2000 which tracks small caps is down 0.5%;
Cryptos are continuing to sell off. It’s been a rough 24-hour period in crypto land. Bitcoin is down 6% to trade below $19,000. Ethereum is doing even worse, down 9%;
Bond yields appear to be coming in a bit at the short end of the curve after rising yesterday. The 2-year is down 3 basis points to 3.47%. The 10-year is down about 2bps to 3.32% (yields move inversely to prices). That’s the narrowest the yield curve inversion has been in some time. Maybe months.
Commodities are mostly unchanged, with WTI crude oil up less than 1% to $87.40/barrel. Copper and gold are flat but silver is up more than 1% for the second day in a row.
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