This morning it looked as though US equities would round the corner on Day 3 of equity stabilization, which started Friday and continued into this morning’s futures trading. But investor's ability to keep equities elevated proved unsustainable. The SPX and CCMP both closed near lows of the day, the former -30bps into the red and the latter was able to eke out a green day, but only just, up a measly 6bps. These last few days of strength haven’t been enough to erase August’s initial weak weeks, and now we are less than a day away from one of the biggest catalysts this month, with the highest expectations-- Nividia’s (-2.6%) earnings. Treasuries were mixed, seemingly unable to hold a bid, giving inflation bulls fuel for their narrative that yields have further to rise thanks to robust growth, reaccelerating inflation, and geopolitical tensions. Another part of that argument is regarding Energy strength though, and crude was weaker for a second day running, down another 50bps. Meanwhile, DXY strength continued +27bps.
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