The Market Brief
Hey team. U.S. futures traded mostly flat during the overnight after U.S. fiscal worries hit sentiment.
Let’s recap the last session and see what’s ahead!
Impact Snapshot
🟥 Unemployment Claims - 8:30am
🟥 Services PMI - 9:45am
Macro Viewpoint
Rates have become the clearest indicator of market sentiment. The bond market is signaling that borrowing costs are climbing, and risk assets now need to reassess their value.
On Wednesday, this pushed yields on 30-year Treasuries up to 5.1%, brushing up against a near 20-year high. That move triggered drops in both stocks and the dollar, as White House officials met with Republican lawmakers to work out a deal on the proposed cuts.
The worry is that the tax plan could pile trillions more onto already ballooning budget deficits, especially at a time when global demand for U.S. assets appears to be cooling.
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