Markets: US stocks erase +3% declines to finish positive Gold up $8 to $1841 WTI crude down $1.39 to $83.74 US 10-year yields flat at
Markets:
- US stocks erase +3% declines to finish positive
- Gold up $8 to $1841
- WTI crude down $1.39 to $83.74
- US 10-year yields flat at 1.765%
- S&P 500 up 12 points to 4410
We witnessed one of the all-time great football comebacks yesterday as the Kansas City Chiefs erased a 3-point deficit with 13 seconds left and won in overtime but today’s price action in markets might have been even better.
Stocks puked in early US trading and that continued through lunch, with the S&P 500 falling by more than 160 points at the lows and the Nasdaq dropping 4%. In the final few hours of trading, the mood stabiliized and then turned in a huge way with stocks miraculously finishing higher on the day in one of the all-time great turnarounds.
For its part, the FX market kept a much steadier hand throughout the day, while following the same contours.The US dollar, euro and yen climbed in tandem as the mood worsened and then unwound those moves late.
Commodity currencies struggled early and NZD/JPY briefly broke the December lows but they steadied midway through trading and grinded back higher. All of CAD, AUD and NZD finished solidly lower against the US dollar so it wasn’t quite the triumphant turnaround of stocks but USD/CAD — for instance — fell to 1.2636 from a high of 1.2701.
Spare a moment for bitcoin as well. It led the reversal in all risk assets as it first bounced to $35K from $32,975 at the lows. It continued climbing late, hitting $37K.
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