January 18, 2022
Good morning,
We had a pretty quiet 3-day weekend market-wise. Omicron appears to be peaking in a number of locals (including NYC), however that seems to be of no concern to the market. What has its attention this morning is rising rates, and the now 2wk old consolidation looks to continue as U.S. markets open this morning.
The 2yr Treasury broached 1% this morning, the first time since Covid hit our shores 2yrs ago. Pre-opening, the futures markets show the Dow down -300 pts, S&P’s down -.90%, and the Nasdaq Comp off -1.5%. The S&P 500 Index is approaching the down 5% level (from its high), an initial level of support in recent years. Let’s see how supportive it is this time around.
Be well,
Mike