The Market Brief
Hello team. U.S. stock futures recovered from earlier steep declines as investors awaited the release of wholesale inflation data at 8:30 a.m., hoping it would confirm indications that inflation is slowing down.
Let’s review the previous session and take a look at what’s ahead!
Impact Snapshot
🟥 PPI Inflation - 8:30am
🟥 Unemployment Claims - 8:30am
Macro Viewpoint
U.S. stock index futures mostly declined in early Thursday trading as investors grappled with growing fears of an economic slowdown, exacerbated by uncertainty surrounding chaotic tariff policies.
Stagflation—characterised by slowing growth and persistent inflation—remains a key concern. With economic expansion cooling, markets are hoping for disinflation, which would give the Federal Reserve room to cut rates, allowing equities, particularly long-duration assets, to recover.
Despite these concerns, the impact of tariffs has yet to show up in the data. CPI figures remain backward-looking, reflecting last month’s trends, leaving uncertainty about how new trade policies might influence inflation moving forward.
Once U.S. growth fears are fully priced in, a strong buying opportunity could emerge for investors looking ahead.
CTAs & Hedge Funds: How the Biggest Players Are Reacting
This has been the most brutal market drawdown since the COVID crash, which hasn’t only affected the retail world but also hedge funds and asset managers, who have seen dramatic losses in recent weeks.
Today, we have included a short article sharing insights about what the biggest market participants have been doing during this drawdown, how it has affected them, and what flow dynamics look like for CTAs. 👇
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