FAST FIVE: Stocks Puke As Soaring Inflation Sparks Hawkish Moves In Money Markets

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Stocks Puke As Soaring Inflation Sparks Hawkish Moves In Money Markets US equity markets just got monkeyhammered, with Small Caps and Big-Tech hit the hardest and unable to hold the bounce.

Inflation breakevens ripped up near their 2004 highs.

And money markets are increasingly pricing in a rate-hike by Dec 2022.

The CPI print prompted inflation swaps, caps and floors to price in a 42% chance of CPI being above 3.00% in 5 years.

Of course, this is all transitory and the fact that the dollar has already erased its 'hawkish' spike suggests the market doesn't see this shifting The Fed's dovish stance.

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