The bright spot is that consumers’ inflation expectations continue to moderate, which may provide some room for the Federal Reserve (Fed) to keep rates on hold for now. But more attention seems to revolve around the weaker-than-expected consumer sentiment data (67.7 versus 69.1 consensus), which marked its second straight month of underperformance. The US two-year yields were back above its 5% level, as market participants continue to adjust their expectations to accommodate for a high-for-longer rate outlook.Įconomic data were largely mixed, with US August industrial production holding up better with a 0.4% month-on-month increase versus the 0.1% expected. Nvidia and Meta were both down 3.7%, alongside Amazon -3% and Microsoft -2.5%.Ī further move higher in US Treasury yields may account for some de-risking as well, with yields setting its sight to overcome its year-to-date high ahead of this week’s Federal Open Market Committee (FOMC) meeting. The VIX bounced 7.6% off its June 2023 bottom, while mega-cap tech stocks failed to provide any much-needed resilience. Major US indices gave back all of last week’s gains on Friday, with volatility triggered by the triple witching day amid the vast options’ expiry (estimated to be $3.4 trillion worth – the largest September expiry on record).
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