Market Summary: The long and the short of it.
Stock and bond markets shrugged off yesterday’s optimism with the biggest Fed liquidity injection yet. Both the S&P 500 and the New York Composite (NYA) indices dived at the opening of trading, but both recovered in the afternoon session to finish at 3010 (+0.19%) and 13118.91 (+0.03%) respectively. The S&P 500 is up 80 basis points for the week and is in striking distance of the July 26 high of 3025. Of note in today’s trading, Twitter (TWTR) got twatted and gave up the entire year’s gains in a single session, ending at $30.75 for a loss of -20.81%. Equally surprising was the surge in the opposite direction for Tesla (TSLA), ending the day at $299 for a gain of +17.67%.
Another unusual occurrence in the markets today saw Gold, Silver, Crude Oil and the U.S. Dollar all move higher together. The stronger dollar didn’t prevent Gold from rallying back above $1,500 to $1,504. Silver surged back above what appears to be its key resistance level to close at $17.82. Crude Oil (WTI) extended its recent gains, pushing above $56.50 a barrel and above the level of the attacks on the Saudi oil facilities in mid-September.
U.S. Treasury Yields were volatile during today’s trading, but for the second day in a row, they ended pretty much unchanged across the entire yield curve. leaving the Treasury curve at its steepest since July 30.
The European markets broadly rallied on the day, with the exception of the UK’s FTSE slipping lower. The escalation of the Brexit political drama gave no clear direction to the UK markets.
The Asian markets ended higher overnight scratching out small gains.
Bitcoin flat-lined in today’s trading session settling at multi-month lows. The rest of the Crypto space managed modest gains after yesterday’s bloodbath.
The fear gauge VIX index fell back below 14 giving an impression of the calm before the storm.