All indices are now lower on the day. Another snatch defeat from the jaw of victory

All the major indices are now lower on the day with the Dow more recently turning negative and giving up a 605.23 point gain.

  • Dow -99 points or -0.29% at 34068
  • S&P -29 points or -0.66% at 4321.32
  • Nasdaq -163 points or -1.2% at 13377
  • Russell 2000 -39.97 points or -2.03% at 1936

Last year it was largely about not being able to keep a down market down. This year, there have been a number of rallies, that have fizzled and given up the gains.

In the US debt market the curve continues to flatten with the 2 year up 8 basis points while the 10 year is down around 6 basis points on the day.

US yields

The US yield curve flattens

The 2-10 year spread has moved to the lowest level since November 2020 as the market prices in higher rates from the Fed and slowing economy.

US 2-10 year spread

US 2-10 year spread

There is now a 59% chance of a 5th hike in December.

Fed

Fed rate hike probability

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