Markets:
- S&P 500 down 11 points to 5297 after hitting record
- Dow Jones Industrial Average hits 40,000 for the first time
- WTI crude oil up 66-cents to $79.30
- US 10-year yields up 2 bps to 4.38%
- Gold down $8 to $2378
- USD leads, CHF lags
It’s tough to find anything to hang the price action on today. Yesterday there was some real enthusiasm in risk assets following CPI and retail sales and that continued in early equity trading but it sputtered elsewhere. The worries started in bonds and FX as yields rose led by the front end and the USD climbed.
To be sure, the moves were modest but they highlight a market that’s not yet ready to give up on high US inflation. The data was mostly softer but the market may have picked out the import/export prices on the hot side and sensed some pipeline inflation there. Initial jobless claims are also hanging in there at historically good levels.
Or perhaps it was…
