Discussion
SPX/NDX are strong in opening trading on the reduction in geopolitical risk premium, but rates are a problem, as confirmed by the muted decline in CDX. The Fed is out speaking dovishly (I’ll update in a FED Watch post later), but rates continue moving higher.
At minimum, this is going to be a choppy market while the market adjusts to rising rates.
Conclusion: This is a trader’s market in the near-term.