US stocks set to erase yesterday's decline
US equities swooned late yesterday but a combination of good news will boost share prices today.
The latest is Powell, who emphasized that the Fed will provide advance notice before announcing a decision to make changes in Fed policy. There was no hint of a rush to hike and that's what the market wanted.
Secondly, Democrats appear to be making progress on a $3.5 trillion infrastructure package and the the bipartisan $600B deal is also grinding forward. It's far from a done deal but committees announced the $3.5T deal late yesterday.
Thirdly, energy companies will cheer the removal of the tail risk of OPEC+ falling apart after reports on a Saudi-UAE deal.
Futures implied open:
- S&P 500 +18
- DJIA +108
- Nasdaq +103
- Russell 2000 +16
Meanwhile, the US dollar continues to slacken across the board. I think today is setting up as a watershed in the reflation trade.
