After better economic data once again from the US:
US equity indexes sold off:
- Dow Jones Industrial Average -198 points (-0.57%)
- S&P 500 - 0.7%
- Nasdaq Composite -1.06%
Treasury yields climbed, yield on the 2-year Treasury note was up about 6 basis points last I saw, easily above the 5% level.
Goldman Sachs say that the price action on Wednesday is consistent with the ‘good news is bad news’ narrative:
- the price action is “characterized by elevated sensitivity to economic data, with equity markets seemingly adopting a ‘bad news is good news’ view, rallying on weak growth data, and selling off on strong data— amid fears that too strong data will increase the risk of an additional rate hike”
