Yesterday saw across the board green as markets bounced off a horrible prior week. But investors have been taught to sell those green days with the complicated macro headwinds, and overnight recession concerns pushed futures lower. We are getting close to quarter end however, and the indexes are nursing some double digit losses (SPX down 17%, Nasdaq down 22%), giving hope that some month/ quarter end rebalancing may give some respite. And therefore when you look at the intraday chart of the S&P 500 today, and compare it to yesterday, they basically look very similar. Rally early off the lows, and then trade relatively sideways into the close. Only difference is that today had slight losses. While every sector yesterday enjoyed the bid, only a handful today closed in the green. Homebuilders (ITB +1.23%) and Biotech (IBB +1.23%) led, as Energy (XLE -4%) and Metals (XME -3.8%) lost. While stocks enjoyed another sideways day, Treasuries and Commodities did not. 10yr yields fell to 3.15% from 3.3% yesterday; Crude fell 4.8% to 104.20, and Copper 2.57%. These assets are monitoring the potential economic slowdown as direct correlations, and the weakness led to losses for their corresponding equity sectors (only ones with ytd gains as well).
The content on this site is available to all Redburn clients as part of Redburn Execution’s standard service. It is not considered substantive research and there are no commercial implications to viewing these pages.
Please enter your email address below to view this page. If you are still unable to access the page, please speak to your account manager.