Stocks faltered as US Treasuries caught a safe haven bid. AI concerns continue to linger, negatively affecting stocks (and corporate bonds) associated with data centre build. Oil prices reached a six month high. FOMC decision is this coming week, mid-term elections are the following week. Investors are likely to remain on edge, and volatility will remain elevated.

Old school investors “won” last week hands down. The “trendy” stock markets and indices that are concentrated in tech shares, especially semiconductor shares (e.g. the NASDAQ and Asian exchanges like the KOSPI), took it on the chin, as investors finally got skittish on the broader A.I. trade. The winners last week were what I view as the “boring places to have your money”, including US Treasuries, European stocks, and indices like the DJIA that are not heavily concentrated

Stocks bounced around but closed the week higher, with both the S&P 500 and the NASDAQ closing at record highs on Friday. US Treasuries were ever-so-slightly better bid, with yields falling a few bps across the curve, Oil remains elevated. Gold and the US Dollar rose, while the Japanese Yen and Bitcoin fell. This week S&P 500 earnings will kick off with the six largest US banks reporting. JNJ, ASML and TSMC will also release results. The FOMC is week after next.

The Fed, Bank of England and Bank of Japan delivered monetary policy decisions largely as expected last week, soothing bond investors who remain concerned about the cost of government borrowing globally. Stocks were mostly weaker with the exception off Japanese equities and the NASDAQ.

Stocks and bonds both got hammered, although global stocks did claw back some of the weekly losses during a strong session on Friday. Inflation in the US for August came in as expected, but was higher than in July setting the stage for a likely increase in the Fed Funds rate at this week's FOMC meeting. Consumer confidence tanked, and President Trump presented the idea of a "Trump Dividend" if Republicans carry the House and Senate. That's simply a stupid idea, but hey....

"....That being said, let’s motor on to what really matters in the coming days – May CPI in the U.S. (released yesterday), upcoming central bank meetings, the SpaceX IPO which is on the launch pad (no pun intended), and U.S. social security."

US Treasury yields are stuck, with the 10y UST yielding just north of 4%, What might be coming next? This article presents the factors that will influence the next gap up or down in UST yields.

We have some US data coming that might matter today (CPI), but the FOMC will sit tight (also today). Discusses Apple's run and GameStop.

Get ready for the next FOMC meeting and a market rip following the debt ceiling agreement. Want to better understand semiconductors?