Monday, stocks gained 1.3% in Asia but lost 2.4% in Europe and 0.9% in the U.S. on 17B shares traded. The VIX moved up 7% to close at 26.52 while the 10-Year U.S. Treasury bond yield plummeted 5% to close at 3.52. Precious metals shot up 4% while their miners blasted 7% higher. Apple ended above its 150 benchmark.
Tuesday, stocks fell 2.1% in Asia but rose 1.5% in Europe, and 1.2% in the U.S. on 14B shares traded. The VIX fell 11% to close at 23.73. The 10-Year U.S. Treasury bond yield jumped 4% higher to close at 3.64. The Dow Jones Industrial Average and S&P 500 Index ended above their respective 32,000 and 3900 levels. The CPI came in about as expected as inflation continues to erode living standards. https://www.zerohedge.com/markets/cpi-slows-expected-americans-real-wages-drop-32nd-straight-month
Wednesday, stocks gained 0.6% in Asia but lost 2.9% in Europe and 1.9% in the U.S. on 16B shares traded. The VIX jumped up 10% to close at 26.14. The 10-Year U.S. Treasury bond yield tumbled 4% lower to close at 3.49. The Dow Jones Industrial Average and S&P 500 Index ended below their respective 32,000 and 3900 levels.
Thursday, stocks declined 0.9% in Asia but advanced 1.2% in Europe and the U.S. on 14B shares traded. The VIX dropped 12% to close at 22.99. The 10-Year U.S. Treasury bond yield gained 3% to close at 3.58. The Dow Jones Industrial Average and S&P 500 Index ended above their respective 32,000 and 3900 levels. Here’s an article that points out that both liquidity and solvency are important for bank stability. The saga of bank collapses continues — this time with First Republic Bank.
Friday, stocks rose 1.7% in Asia but fell 1.2% in Europe and 1.6% in the U.S. on 20B shares traded as the quadruple witching day increased trading volume. The VIX rose 11% to end at 25.51. The 10-Year U.S. Treasury bond yield fell 5% to close at 3.40. Precious metals jumped 4% higher while their miners gained 5%. The Dow Jones Industrial Average ended below its 32,000 benchmark.
Major cryptocurrencies swooned a week ago. In reaction, they ended this week up around 30% from that low. Finally, the Federal Reserve balance sheet shot up 297B to 8.64T — reversing four months of QT in a single week! It’s amazing how the Fed can dramatically raise its balance sheet, but when it comes to lowering it, they must follow an arduously slow pace.