The argument that rates matter more than economic growth is increasingly compelling for US equities. The terminal Fed rate has come down to 3.5% this week from +4% last week and it's coincided with a bounce.

Today we got more news suggesting an economic slowdown as the S&P Global US PMIs sank but it didn't matter to stocks.

  • S&P 500 up 36 points, or 0.95%, to 3795
  • Nasdaq +1.6%
  • Russell 2000 +1.2%
  • DJIA +0.6%

Tomorrow will be an important day with the Nasdaq approaching the mid-June 'gap' on the chart: