Month: October 2022

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

The printing was slightly lower than the 8,3% rise in August, with monthly gains fuelled primarily by housing, food, and medical care, at a time when gasoline prices are retreating from summer highs.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

The printing was slightly lower than the 8,3% rise in August, with monthly gains fuelled primarily by housing, food, and medical care, at a time when gasoline prices are retreating from summer highs.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

U.S. Bureau of Labor Statistics announced on Thursday a bit hotter-than-expected U.S. inflation print in September, with the Consumer Price Index, a key inflation barometer, soaring by 8,2% y-y versus market expectation of an 8,1% annual increase.

The printing was slightly lower than the 8,3% rise in August, with monthly gains fuelled primarily by housing, food, and medical care, at a time when gasoline prices are retreating from summer highs.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

U.S. Bureau of Labor Statistics announced on Thursday a bit hotter-than-expected U.S. inflation print in September, with the Consumer Price Index, a key inflation barometer, soaring by 8,2% y-y versus market expectation of an 8,1% annual increase.

The printing was slightly lower than the 8,3% rise in August, with monthly gains fuelled primarily by housing, food, and medical care, at a time when gasoline prices are retreating from summer highs.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

A hotter-than-expected CPI data:

U.S. Bureau of Labor Statistics announced on Thursday a bit hotter-than-expected U.S. inflation print in September, with the Consumer Price Index, a key inflation barometer, soaring by 8,2% y-y versus market expectation of an 8,1% annual increase.

The printing was slightly lower than the 8,3% rise in August, with monthly gains fuelled primarily by housing, food, and medical care, at a time when gasoline prices are retreating from summer highs.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

A hotter-than-expected CPI data:

U.S. Bureau of Labor Statistics announced on Thursday a bit hotter-than-expected U.S. inflation print in September, with the Consumer Price Index, a key inflation barometer, soaring by 8,2% y-y versus market expectation of an 8,1% annual increase.

The printing was slightly lower than the 8,3% rise in August, with monthly gains fuelled primarily by housing, food, and medical care, at a time when gasoline prices are retreating from summer highs.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

The well-awaited monthly inflation data have been very important for economists as they can see the bigger picture of the economy and predict future inflation trends, while at the same time, it is very crucial for Federal Reserve’s monetary policy trajectory as well as for their interest rate hiking path since the Consumer Price index measures how quickly the prices consumers pay for a broad range of goods and services are rising.

A hotter-than-expected CPI data:

U.S. Bureau of Labor Statistics announced on Thursday a bit hotter-than-expected U.S. inflation print in September, with the Consumer Price Index, a key inflation barometer, soaring by 8,2% y-y versus market expectation of an 8,1% annual increase.

The printing was slightly lower than the 8,3% rise in August, with monthly gains fuelled primarily by housing, food, and medical care, at a time when gasoline prices are retreating from summer highs.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

The well-awaited monthly inflation data have been very important for economists as they can see the bigger picture of the economy and predict future inflation trends, while at the same time, it is very crucial for Federal Reserve’s monetary policy trajectory as well as for their interest rate hiking path since the Consumer Price index measures how quickly the prices consumers pay for a broad range of goods and services are rising.

A hotter-than-expected CPI data:

U.S. Bureau of Labor Statistics announced on Thursday a bit hotter-than-expected U.S. inflation print in September, with the Consumer Price Index, a key inflation barometer, soaring by 8,2% y-y versus market expectation of an 8,1% annual increase.

The printing was slightly lower than the 8,3% rise in August, with monthly gains fuelled primarily by housing, food, and medical care, at a time when gasoline prices are retreating from summer highs.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

Investors experienced a remarkable trading session on Thursday given the incredible intraday reversal across the equities, commodities, and forex markets following an initial sell-off after the release of hotter-than-expected U.S. inflation data for September.

The well-awaited monthly inflation data have been very important for economists as they can see the bigger picture of the economy and predict future inflation trends, while at the same time, it is very crucial for Federal Reserve’s monetary policy trajectory as well as for their interest rate hiking path since the Consumer Price index measures how quickly the prices consumers pay for a broad range of goods and services are rising.

A hotter-than-expected CPI data:

U.S. Bureau of Labor Statistics announced on Thursday a bit hotter-than-expected U.S. inflation print in September, with the Consumer Price Index, a key inflation barometer, soaring by 8,2% y-y versus market expectation of an 8,1% annual increase.

The printing was slightly lower than the 8,3% rise in August, with monthly gains fuelled primarily by housing, food, and medical care, at a time when gasoline prices are retreating from summer highs.

Hence, the “Core” inflation, which strips out food and energy costs rose 6,6% in September, up from 6,3% in August, hitting its highest level since August 1982.

The higher-than-expected “Core” rate is a negative development for the consumers and the local economy given that there are more contributors to inflation than there are detractors, led by increases in rents, medical care, household furnishings, and new and used cars.

Market reaction:

Investors interpreted the red-hot U.S. inflation data as not as bad as it initially appeared and that the inflation will peak soon, rushing back into riskier assets such as stocks, risk-sensitive currencies, growth-led commodities, and cryptocurrencies, at a time dragging out some profits from the haven dollar.

S&P 500 index, 15-minute chart

As a result, the Wall Street indices closed sharply higher on Thursday, reversing the earlier 2% sell-off after the CPI data, and staging a historic turnaround rally.

For instance, S&P 500 index was rallying by over 2% in early Thursday’s session amid the risk-on mood ahead of the CPI report, but collapsed by more than 2% on the data, before posting an enormous reversal and ending the day with 2,60% gains for the first time after a six-day losing streak.

A similar picture is seen in the Dow Jones which ended Thursday’s session up 827 points, or +2,83%, after being down more than 500 points earlier in the day, posting 1,500 points swing led by gains in energy and bank stocks.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

After Friday’s jobs report, market participants are now pricing in a nearly 75% chance the Federal Reserve will raise interest rates by another 75 basis points in the next FOMC policy meeting on November 02, and a 60% chance for another 50 basis points hike on December 14.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

After Friday’s jobs report, market participants are now pricing in a nearly 75% chance the Federal Reserve will raise interest rates by another 75 basis points in the next FOMC policy meeting on November 02, and a 60% chance for another 50 basis points hike on December 14.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

S&P 500 index, Daily chart

After Friday’s jobs report, market participants are now pricing in a nearly 75% chance the Federal Reserve will raise interest rates by another 75 basis points in the next FOMC policy meeting on November 02, and a 60% chance for another 50 basis points hike on December 14.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

S&P 500 index, Daily chart

After Friday’s jobs report, market participants are now pricing in a nearly 75% chance the Federal Reserve will raise interest rates by another 75 basis points in the next FOMC policy meeting on November 02, and a 60% chance for another 50 basis points hike on December 14.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

S&P 500 index, Daily chart

After Friday’s jobs report, market participants are now pricing in a nearly 75% chance the Federal Reserve will raise interest rates by another 75 basis points in the next FOMC policy meeting on November 02, and a 60% chance for another 50 basis points hike on December 14.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

The S&P 500 index lost 3%, the tech-heavy Nasdaq Composite plunged nearly 4% while dollar and bond yields jumped to weekly highs on Friday after the release of the U.S. unemployment rate which came at 3,5% for September versus the forecast of 3.7%, an indication that the U.S. labor and corporate market remains strong and resilient despite efforts by the Federal Reserve to slow the economy, and the headwinds of the global energy crisis.

S&P 500 index, Daily chart

After Friday’s jobs report, market participants are now pricing in a nearly 75% chance the Federal Reserve will raise interest rates by another 75 basis points in the next FOMC policy meeting on November 02, and a 60% chance for another 50 basis points hike on December 14.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

The S&P 500 index lost 3%, the tech-heavy Nasdaq Composite plunged nearly 4% while dollar and bond yields jumped to weekly highs on Friday after the release of the U.S. unemployment rate which came at 3,5% for September versus the forecast of 3.7%, an indication that the U.S. labor and corporate market remains strong and resilient despite efforts by the Federal Reserve to slow the economy, and the headwinds of the global energy crisis.

S&P 500 index, Daily chart

After Friday’s jobs report, market participants are now pricing in a nearly 75% chance the Federal Reserve will raise interest rates by another 75 basis points in the next FOMC policy meeting on November 02, and a 60% chance for another 50 basis points hike on December 14.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

Traders extremely experienced volatility last week, with the S&P 500 index bouncing 5% on Monday-Tuesday, recording its largest two-day gains since 2020 before resuming losses on the following days after the hotter-than-expected U.S. Nonfarm Payrolls report for September last Friday, sparking fear that the Federal Reserve would continue hiking rates aggressively.

The S&P 500 index lost 3%, the tech-heavy Nasdaq Composite plunged nearly 4% while dollar and bond yields jumped to weekly highs on Friday after the release of the U.S. unemployment rate which came at 3,5% for September versus the forecast of 3.7%, an indication that the U.S. labor and corporate market remains strong and resilient despite efforts by the Federal Reserve to slow the economy, and the headwinds of the global energy crisis.

S&P 500 index, Daily chart

After Friday’s jobs report, market participants are now pricing in a nearly 75% chance the Federal Reserve will raise interest rates by another 75 basis points in the next FOMC policy meeting on November 02, and a 60% chance for another 50 basis points hike on December 14.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

Traders extremely experienced volatility last week, with the S&P 500 index bouncing 5% on Monday-Tuesday, recording its largest two-day gains since 2020 before resuming losses on the following days after the hotter-than-expected U.S. Nonfarm Payrolls report for September last Friday, sparking fear that the Federal Reserve would continue hiking rates aggressively.

The S&P 500 index lost 3%, the tech-heavy Nasdaq Composite plunged nearly 4% while dollar and bond yields jumped to weekly highs on Friday after the release of the U.S. unemployment rate which came at 3,5% for September versus the forecast of 3.7%, an indication that the U.S. labor and corporate market remains strong and resilient despite efforts by the Federal Reserve to slow the economy, and the headwinds of the global energy crisis.

S&P 500 index, Daily chart

After Friday’s jobs report, market participants are now pricing in a nearly 75% chance the Federal Reserve will raise interest rates by another 75 basis points in the next FOMC policy meeting on November 02, and a 60% chance for another 50 basis points hike on December 14.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

Financial markets around the world continued their downward trend momentum on Monday morning due to a broader risk aversion sentiment as investors worry that last Friday’s stronger-than-expected U.S. NFP-employment data will keep the Federal Reserve on an aggressive path of interest rate hikes.

Traders extremely experienced volatility last week, with the S&P 500 index bouncing 5% on Monday-Tuesday, recording its largest two-day gains since 2020 before resuming losses on the following days after the hotter-than-expected U.S. Nonfarm Payrolls report for September last Friday, sparking fear that the Federal Reserve would continue hiking rates aggressively.

The S&P 500 index lost 3%, the tech-heavy Nasdaq Composite plunged nearly 4% while dollar and bond yields jumped to weekly highs on Friday after the release of the U.S. unemployment rate which came at 3,5% for September versus the forecast of 3.7%, an indication that the U.S. labor and corporate market remains strong and resilient despite efforts by the Federal Reserve to slow the economy, and the headwinds of the global energy crisis.

S&P 500 index, Daily chart

After Friday’s jobs report, market participants are now pricing in a nearly 75% chance the Federal Reserve will raise interest rates by another 75 basis points in the next FOMC policy meeting on November 02, and a 60% chance for another 50 basis points hike on December 14.

The Federal Reserve has raised interest rates five times this year for a total of 3 percentage points and is expected to continue hiking through at least the mid-2023, to bring down inflation running near its highest annual rate in more than 40 years.

On top of that, the U.S. stock futures were also lower by 0,50% in early premarket trade on Monday, with traders looking ahead to a key U.S. CPI inflation data for September on Thursday which will be a catalyst into the Fed’s stance on interest rates, and the beginning of corporate earnings season.

Asia-Pacific markets also settled into the deep red this morning following the negative market sentiment, with Hong Kong’s Hang Seng index leading losses by nearly 3% as Chinese chipmakers listed in the city plunged following new export rules from the U.S.

A similar bearish trend is seen in Europe this morning as well, with the pan-European Stoxx 600 falling 0.5% in early trade, led by tech stocks following the overnight selloff in the tech sector in Asia.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

The pullback in the dollar and yields appear to partially reflect market participants’ greater comfort that the Federal Reserve is moving closer to the end of its rate hike cycle, at a time when the market expectations for the Fed’s terminal policy rate for next year have come down from around 4.75% to 4.39%.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

The pullback in the dollar and yields appear to partially reflect market participants’ greater comfort that the Federal Reserve is moving closer to the end of its rate hike cycle, at a time when the market expectations for the Fed’s terminal policy rate for next year have come down from around 4.75% to 4.39%.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

The falling bond yields have also paused the rally on the U.S. dollar, with the DXY-dollar index falling as low as the 111 mark, for the first time since September 22, providing brief relief to risky assets and the dollar-denominated commodities.

The pullback in the dollar and yields appear to partially reflect market participants’ greater comfort that the Federal Reserve is moving closer to the end of its rate hike cycle, at a time when the market expectations for the Fed’s terminal policy rate for next year have come down from around 4.75% to 4.39%.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

The falling bond yields have also paused the rally on the U.S. dollar, with the DXY-dollar index falling as low as the 111 mark, for the first time since September 22, providing brief relief to risky assets and the dollar-denominated commodities.

The pullback in the dollar and yields appear to partially reflect market participants’ greater comfort that the Federal Reserve is moving closer to the end of its rate hike cycle, at a time when the market expectations for the Fed’s terminal policy rate for next year have come down from around 4.75% to 4.39%.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

The relief rally came as the benchmark 10-year Treasury fell as low as 3.55% yesterday, after having briefly surpassed the 4%-mark on September 28, while the yield on the policy-sensitive 2-year Treasury fell to a 4% key resistance level, after hitting a 20-year high of 4,36% last week.

The falling bond yields have also paused the rally on the U.S. dollar, with the DXY-dollar index falling as low as the 111 mark, for the first time since September 22, providing brief relief to risky assets and the dollar-denominated commodities.

The pullback in the dollar and yields appear to partially reflect market participants’ greater comfort that the Federal Reserve is moving closer to the end of its rate hike cycle, at a time when the market expectations for the Fed’s terminal policy rate for next year have come down from around 4.75% to 4.39%.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

The relief rally came as the benchmark 10-year Treasury fell as low as 3.55% yesterday, after having briefly surpassed the 4%-mark on September 28, while the yield on the policy-sensitive 2-year Treasury fell to a 4% key resistance level, after hitting a 20-year high of 4,36% last week.

The falling bond yields have also paused the rally on the U.S. dollar, with the DXY-dollar index falling as low as the 111 mark, for the first time since September 22, providing brief relief to risky assets and the dollar-denominated commodities.

The pullback in the dollar and yields appear to partially reflect market participants’ greater comfort that the Federal Reserve is moving closer to the end of its rate hike cycle, at a time when the market expectations for the Fed’s terminal policy rate for next year have come down from around 4.75% to 4.39%.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

Lower dollar and bond yields:

The relief rally came as the benchmark 10-year Treasury fell as low as 3.55% yesterday, after having briefly surpassed the 4%-mark on September 28, while the yield on the policy-sensitive 2-year Treasury fell to a 4% key resistance level, after hitting a 20-year high of 4,36% last week.

The falling bond yields have also paused the rally on the U.S. dollar, with the DXY-dollar index falling as low as the 111 mark, for the first time since September 22, providing brief relief to risky assets and the dollar-denominated commodities.

The pullback in the dollar and yields appear to partially reflect market participants’ greater comfort that the Federal Reserve is moving closer to the end of its rate hike cycle, at a time when the market expectations for the Fed’s terminal policy rate for next year have come down from around 4.75% to 4.39%.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

Lower dollar and bond yields:

The relief rally came as the benchmark 10-year Treasury fell as low as 3.55% yesterday, after having briefly surpassed the 4%-mark on September 28, while the yield on the policy-sensitive 2-year Treasury fell to a 4% key resistance level, after hitting a 20-year high of 4,36% last week.

The falling bond yields have also paused the rally on the U.S. dollar, with the DXY-dollar index falling as low as the 111 mark, for the first time since September 22, providing brief relief to risky assets and the dollar-denominated commodities.

The pullback in the dollar and yields appear to partially reflect market participants’ greater comfort that the Federal Reserve is moving closer to the end of its rate hike cycle, at a time when the market expectations for the Fed’s terminal policy rate for next year have come down from around 4.75% to 4.39%.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.

U.S. equities started the new month and Q4 quarter on a positive note, rebounding for the second day in a row on Tuesday, as investors increased their appetite for the beaten-down risky assets following the recent weakness in the U.S dollar and Treasury yields.

Lower dollar and bond yields:

The relief rally came as the benchmark 10-year Treasury fell as low as 3.55% yesterday, after having briefly surpassed the 4%-mark on September 28, while the yield on the policy-sensitive 2-year Treasury fell to a 4% key resistance level, after hitting a 20-year high of 4,36% last week.

The falling bond yields have also paused the rally on the U.S. dollar, with the DXY-dollar index falling as low as the 111 mark, for the first time since September 22, providing brief relief to risky assets and the dollar-denominated commodities.

The pullback in the dollar and yields appear to partially reflect market participants’ greater comfort that the Federal Reserve is moving closer to the end of its rate hike cycle, at a time when the market expectations for the Fed’s terminal policy rate for next year have come down from around 4.75% to 4.39%.

Market reaction:

The “oversold” U.S. stocks recorded their best trading day since the end of June on Monday, with most of the indices settling higher as the final quarter (Q4) of the year began. The Dow Jones jumped nearly 2.7%, posting its best day since June 24, the S&P 500 advanced about 2.6% on its best day since July 27, while the tech-heavy Nasdaq Composite increased roughly 2.3%.

Dow Jones index, 1-hour chart

The gains came despite the unexpected decline of the U.S. Purchasing Managers’ Index data for September to the lowest level since May 2020, suggesting a drop in demand for factory-produced goods amid the surging inflation and soaring interest rates.

As for Tuesday, the futures tied to the S&P 500 increased by 1.7%. Nasdaq 100 futures were up 2%, while the futures for the Dow Jones were up 1.5%.

That’s a significant shift from the previous quarter (Q3), and especially the month of September, which saw the major indices notching their biggest monthly losses since March 2020, or down nearly 10%, amid the growing fears of an economic recession brought on by Fed’s rate hikes being implemented too quickly.

For the previous quarter, the Dow Jones fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015, while both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

Looking at Europe, the pan-European Stoxx 600 climbed 2% in early trade following the overnight rally on Wall Street, with growth-sensitive travel and leisure stocks jumping 4% to lead gains as all sectors and major bourses entered positive territory.