With only a few high profile events this week (eg UofM sentiment) and next (eg US CPI), volatility will struggle to form trend…unless there is an elemental development in ‘risk trends’
Fed Chairman Powell’s remarks and the NFIB business sentiment survey sliding this past session wouldn’t urge the S&P 500 nor Dollar into a productive trend
While there was notable event risk for release Monday – such as the NY Fed’s inflation expectations – it seemed markets were motivated more by Friday’s momentum
While the market’s sidled higher with a backdrop of tempered rate expectations, there is significant contrast in recession risks and risk from extremely complacent conditions