S&P 500, Nasdaq 100 Squeeze as the Bank of England Pivots – Fed to Follow?

Risk is flying during the US session as traders digest major news out of the UK, where the Bank of England announced a major policy pivot after days of major market fluctuations. The BoE announced the suspension of planned gilt sales, while also stating that the bank will purchase longer-dated bonds on a temporary basis. The move comes following a major rout of theand gilt markets, which both saw declines of historic proportions.

Following the announcement this morning, US markets soared as traders moved to price in bets that the Federal Reserve could soon follow the Old Lady in changing course. The potential for a pivot has seen a sharp decline in theIndex as well as US Treasury yields, which has offered equities a major boost. The 2-year Treasury yield is down more than 20 bps from the weekly high of 4.36%, while the 10-year yield continues to retreat away from 4%.

The bid into USTs allowed for a major ramp in risk assets during the US session, with S&P 500 futures soaring out of the 3620 support zone. Price has since sliced right through each resistance level during its ascent, with ES returning to the battleground at 3720. The relentless push by bulls to return the auction to this area over the last week is meaningful, and indicates that they are not quite ready to give way at the June lows.

Equity markets have yet to see material downgrades to 2023 earnings estimates, as many still feel a “soft landing” is possible. With such a hot labor market, the Fed has made it clear that the primary focus is inflation. As corporate America kisses goodbye to an era of “easy money,” the focus now turns to which companies can post meaningful earnings that aren’t fueled by stock buybacks.

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Breakingviews - Clock ticks for reining in TikTok riskPresident Joe Biden’s administration is inching closer to a proposal for how to allay the perceived security risks over social network TikTok, but it is still dithering on the details, according to the New York Times. Meanwhile, the Chinese-owned short-form video platform is soaring in popularity. The more time that passes, the harder TikTok gets to police.
Source: Breakingviews - 🏆 470. / 51 Read more »

Long COVID risk falls only slightly after vaccination, huge study showsVaccination against SARS-CoV-2 lowers the risk of long COVID after infection by only about 15%, according to a study of more than 13 million people Significant? Be careful with statistics meaning… Well, let’s vaccinate people with a modified vaccine and then we’ll talk. Unfortunately the large majority of vaccinated people has only an immune response towards the Wuhan strain: why being surprised ? '“Generally speaking, this is horrifying,” says David Putrino, a physical therapist at Mount Sinai Health System in New York City who studies long COVID.'
Source: Nature - 🏆 64. / 68 Read more »

ACS warns fertility preservation for cancer patients could be at risk in futureIn the wake of the reversal of Roe v. Wade, the American Cancer Society is warning that their fertility preservation options could be at risk in the future.
Source: 6abc - 🏆 250. / 63 Read more »

Redditch man at risk of dementia to run seven marathons in seven daysJordan Adams, 27, is embarking on a huge marathon challenge after losing his mum to the condition.
Source: bbchealth - 🏆 143. / 63 Read more »

High Iron Levels Predict Greater Fracture Risk, More So in MenIron overload is a clinically important problem, not only in genetically predisposed people but in people who get frequent transfusions, and this study shows increased fracture risk, says an observer. Hemochromatic osteoporosis is a real thing! nihardesai7
Source: Medscape - 🏆 386. / 55 Read more »

Bridging CeFi and DeFi: Better Risk Management and More Sustainable Wealth Generation | HackerNoon'Bridging CeFi and DeFi: Better Risk Management and More Sustainable Wealth Generation' by midastrevor cedefi investment
Source: hackernoon - 🏆 532. / 51 Read more »