Good morning contrarians! It is Tuesday, Oct. 4.
Stocks staged a major rally yesterday, with major US indexes all up over 2%. The rally appears to have been caused by expectations, helped along by the UN, that the Fed and other Central Banks will soon pivot from further interest rate hikes.
State of Play
As of 0620, it looks like the risk-on mood is set to continue:
Stock futures are pointing to gains, led by the Nasdaq which is up 2.2%. S&P 500 futures are up 1.8%;
Bonds are being bid up as well. The 2-year yield is down 10 basis points to approach 4% for the first time in about two weeks. The 10-year is down 7bps to 3.58% (yields move inversely to prices);
Cryptos are gaining ground, with Bitcoin up 4% to move close to $20,000;
Commodities are flat, with WTI crude oil trading around $84/barrel.