Federal Reserve

The Delta Variant grabbed headlines yesterday and markets reacted. Tech stocks led the way as traders and managers pulled out their 2020 Covid-19 playbooks.
U.S. benchmarks have continued their rebound from last week’s healthy pullback. After a quiet overnight session, the S&P is staring down the barrel at its all-time high. The Nasdaq has already set a fresh record for the second straight session. 
A very minor shift in the Fed’s rate hike expectations has roiled risk assets and strengthened the U.S. Dollar. Via their dot plot, committee members now anticipate 2 rate hikes through the end of 2023. 
Fridays have typically been strong when such green lights have emerged and although stocks finished higher, it was broadly a lackluster session. What changed?
This week builds up into Thursday’s monumental inflation data, ECB meeting, and Initial Jobless Claims. Portfolio managers and traders want to be long risk assets such as stocks and commodities, but fear inflation that has begun to run hot.
We continue to hear so much chatter about inflation; that’s the biggest factor driving gold recently and it’ll continue to be the driving force behind future rallies. Gold is still a good value in the longer term.
U.S. benchmarks are now pointing lower and working their way through supports ahead of the bell. Despite exuding a bullish tone, we’ve warned that an inability to hold higher prices will encourage a probing lower.
What type of month-end flows will we see? How does this setup for June? Plus, the data gauntlet also includes the Fed’s preferred inflation indicator, the Core PCE Index, tomorrow.
U.S. benchmarks are pointing higher ahead of Monday’s opening bell, but our rare major 4-star ceiling won Friday’s battle and again overshadows today’s early strength.
The gold trade seems to be a little too easy recently, incrementally working its way higher since putting in a low of $1,677.30 on March 31st. Is gold finally behaving the way one would expect in an inflationary environment?