Today, stocks were hammered, with the S&P 500 breaking to fresh lows into the bell to finish more than 2.5% in the red.

Treasurys were bid across the board to leave yields sharply lower. The dollar trended higher throughout the day to reverse overnight weakness.  The VIX jumped by more than 30%, and settled above 24, its highest close since the immediate aftermath of the short-vol-blowup on Feb. 13. 

The Fed is set to conclude its two-day meeting tomorrow, futures place the odds of a rate hike at 100%.

“Money of the mind is the broadest definition of money. It’s bounded only by the imagination.”

Bitcoin, which traded at less than $1,000 and nearly $20,000 at different points last year, has generally remained in a $7,000 to $11,000 per coin range in recent weeks.  Bloomberg notes that the narrower trading range has coincided with waning public interest:

 

Internet searches for ‘Bitcoin’ have plunged . . . Online searches for ‘bitcoin’ fell 82 percent from December highs, according to Google Trends. Tweets that mention the coin peaked Dec. 7, at 155,600, and are now down to about 63,000, BitInfoCharts says. And the number of bitcoin transactions is off 60 percent from its record on Dec. 13, according to Blockchain.info. 

market observations

While the global economy runs on QE-fumes suggesting growth, the economic engine seems to be, in reality, running on a couple cylinders in great need of an overhaul while central banks continue to pour fuel into the tank hoping for some continued measure of progress. Since 2016, major averages have corrected beyond a few percent just once. The fast bounce back to new highs suggests global QE will win the tug-o-war vs. higher rates in the U.S. 

market observations

Stocks caught a bid, with the S&P 500 extending its gain for the week to 1.8% so far.  Treasury yields ticked lower across the curve, and a stronger greenback pushed the Dollar Index back above 90 as today’s steel and aluminium tariff announcement featured exemptions for Canada and Mexico, as well as the possibility of other countries also getting a waiver.