The Fed is now in the blackout period ahead of the May 4 FOMC decision so the market will be left to its own devices. So far, that's not a good thing with European equities sliding and the US dollar bid continuing. S&P 500 futures are down 36 points with only 157 points of cushion before we're at the lowest since July 2021. The Nasdaq has even less breathing room and that's where the focus will be this week with megacap tech earnings on the agenda.
For now, I'm watching the bond market. US 2-year yields have reversed and are down 11 bps to 2.60% on a safe haven bid.
In theory that would be bad for the dollar but there's such an intense bid for safety right now that it's balanced out.
Gold has also just fallen below $1900 (-$30) to the lowest since March 29.
The lone item on the economic calendar is the Dallas Fed manufacturing survey, which is never a market mover.
