“If I cannot inspire love, I will cause fear!”
— Mary Shelley, “Frankenstein”
It seems that this year Halloween was spookier on Wall Street than on Main Street. At a minimum yesterday’s session was an indication on how fragile legs many assets stand. Let’s have a brief look back at what haunted investors yesterday:
Spook #1: Admittedly, I slightly overestimated the UK government’s intelligence with regards to running their finances in yesterday’s note. The bond market pretty much rebelled versus Chancellor’s Reeves budget announced Wednesday via a 16 basis points intraday rise, before settling a still concerning eight basis points higher above the previous day’s close.
Spook #2: Earnings had equity investors on their collective toes. Just scroll back up or see below to witness the percentage moves of the biggest gainers and losers. Massive double-digit numbers on both sides their.
Spook #3: As the FT’s Alphaville column put it … Super Micr - oh no! We already mentioned yesterday that SMCI’s share price dropped 33% after their auditors (EY … Wirecard anyone?) resigned from the job. Yesterday, the stock fell another twelve percent.
Spook #4: The entire stock market was tilted in a bloody red yesterday. Here’s the S&P 500 bloodbath as a representative:
Spook #5: Garbage In, Garbage out? Related or not, after presidential candidate Trump’s stunt
his chances of a win suddenly slimed from (PredictIt):
The spook is of course that the market is fully positioned for a Trump win, if not even a Red Sweep …
Upcoming Spooks: So over the next four business days, we’ll get US NFP (today), a government election (Tuesday) and a FOMC interest rate decision (Wednesday) to complete our 9½ Weeks Days tour-de-scare. Be brave!
(and make sure to read the next edition of The Quotedian, which will discuss all this “stuff”.)
Let’s try to “unspook” our mood this haunted Friday by having a glance at the table below (courtesy Ryan Detrick @ Carson):
Best six months of the year … we are ready for you!!
Have a great weekend!
