Big-Tech, Bonds, & Bitcoin Slide As Dollar Hits 5-Month Highs

Big-Tech, Bonds, & Bitcoin Slide As Dollar Hits 5-Month Highs

Stocks were mixed today with The Dow leading and Nasdaq lagging (S&P managed to cling to the green on the day). Notice overnight – around 2145ET, futures took a brief battering. There were no obvious headline-based catalysts for that move.

The cash open was chaos with Nasdaq bid and Small Caps slammed… but that reversed very rapidly soon after with nasdaq hammered as yields rose and Small Caps rallying to the highs of the day… (makes you wonder if we reverse all this tomorrow?)

Of course today was all about “infrastructure” and Shelby’s decision not to allow the crypto amendment (which he admits he liked) because the mean Senators would not give him his warmongering ball back…

Treasuries were sold again today with the belly underperforming (5Y +2.5bps, 2Y & 30Y +1bps). Notice that he only real selling pressure today magically appeared at the US cash open and ended at the European close…

Source: Bloomberg

10Y Yields are back at their highest in a month…

Source: Bloomberg

The Dollar pushed on to new cycle highs, back at its highest close since March…

Source: Bloomberg

Cryptos were lower on the day (amid Shelby’s stupidity and the Poly hack FUD) with Bitcoin topping $46,750 before sliding…

Source: Bloomberg

And Ethereum rallied above $3250 before fading back a little

Source: Bloomberg

And while the dollar extended gains, oil prices extended their rebound from yesterday afternoon, with WTI testing above $68.50 (ahead of tonight’s API inventory data)…

Gold managed very modest gains (but was off the mid-morning lows) as it struggles to rebounded from Sunday night’s carnage…

Finally, after more taper talk today from Fed speakers, the market’s pricing in a much more hawkish Fed with futures now implying an almost certain rate-hike before the end of 2022…

Source: Bloomberg

Tyler Durden
Tue, 08/10/2021 – 16:00

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