Finance

Stocks & Bonds Slammed As Dimon Warns “You'd Better Brace Yourself”

Stocks & Bonds Slammed As Dimon Warns “You’d Better Brace Yourself”

US equity and bond markets just lurched lower (in price) and the dollar spiked higher as a combination of headlines hit.

Put all that together and equities tumbled…

Treasury yields spiked…

With the short-end getting hammered, flattening the yield curve…

And the dollar surged…

For now most desks are focusing on Dimon’s comments and the potential ‘worsening’ of them in the last week:

Looking ahead, “we’re bracing ourselves,” Dimon said, referring to risks such as the Russian invasion of Ukraine.

At a previous conference, he called those risks “storm clouds,” now he’s saying, “It’s a hurricane. That hurricane is right there, down the road, and coming our way. We don’t know if it’s a minor storm or if it’s a Superstorm Sandy.”

Dimon’s comments follow Wells Fargo’s CEO warning this morning that higher interest rates mean the economy has to slow, and that a soft-landing scenario was hard to achieve.

Finally, we also note that Fed’s Biostic walked back his September “pause” comments, clarifying that this is in no way menat to be a “Fed Put”.

Tyler Durden
Wed, 06/01/2022 – 10:19

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