FAST FIVE: Dovish Fed Sparks Bond & Stock Surge During Holiday Week

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Dovish Fed Sparks Bond & Stock Surge During Holiday Week Amid a holiday-shortened week of low liquidity, bonds and stocks rallied as the dollar drifted lower on the heels of dovish Fed 'pause' hopes which sent terminal rate expectations slightly lower and subsequent rate-cut expectations higher.

The early weakness of the week gave way on Tuesday and Wednesday to a big short squeeze back to unchanged for the “most shorted” stocks The dollar fell for the 5th week of the last 6 to its lowest weekly close in 3 months.

Source: Bloomberg Commodities were mixed on the week with crude sliding amid Russian price cap scheme headlines and China COVID cases soaring.

Silver outperformed (with gold flat) amid the dovish title to market expectations.

just before COVID hit, that number was 22 cents.

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