The broad market is looking to break a four-day slide despite a hotter-than-expected read on core CPI. We think the market has already priced in “bad news”.

All factors are sitting in green territory.

Yields are lower today across the curve even as odds of a rate hike spiked this morning.

In addition, crude prices softened today after the IEA cut its forecasts for oil demand this year. They are looking for a drop of 2.5 million barrels per day, the largest drop since the pandemic.

Strength is broad, with all eleven S&P 500 sectors trading higher. Communication Services (XLC) and Technology (XLK) hold the widest gains, supported by strength in mega-cap stocks such as Alphabet (GOOG/L) and Apple (AAPL).

Economic News

Economic adviser Kevin Hassett said this morning that inflation has clearly slowed down over the past three months, stressing that the Fed’s independence should be respected. He also noted Trump’s proposed $5,000 checks are a “serious proposal,” saying the administration believes they can be delivered in a fiscally responsible way.

September Consumer Sentiment saw a big decline to 47.8 from 51.7 driven by the future expectations component. Geopolitical concerns and high oil prices are playing a role, as inflation expectations also moved higher.

Have a great weekend!