US equities were sharply lower in Tuesday trading, ending just off their worst levels in the wake of today's hotter-than-expected August CPI data, with the Dow Jones, SandP500, and Nasdaq falling 394 basis points, 432 basis points, and 516 basis points respectively. The SandP and Nasdaq posted their worst day since Jun-20th. Growth was an underperformer versus value by ~170 basis points, but both factors were down. Treasuries were mostly weaker with yields at the front-end of the curve sharply higher. August's CPI release showed headline inflation rising 10 basis points m/m against expectations for a slight monthly pullback. The release put market under significant pressure, with some press commentary helping push odds of a 100bp September hike over 30%.

US equities were higher in uneventful Monday afternoon trading, though ended somewhat off best levels. The SandP and Nasdaq both up for the fourth-straight day, extending last week's rally that broke a streak of three-straight weekly declines. Treasuries were mostly weaker, off some earlier strength, with the curve steepening. Fairly quiet from a headline perspective, with focus tightly on tomorrow's August CPI report and expectations for a m/m headline decline. NY Fed survey showed consumer inflation expectations continued to decline in August across all time horizons with respondents increasingly optimistic about their finances.

US equities rallied this week to break three-straight weekly declines, with the Dow Jones, SandP500, and Nasdaq closing the week up 266 basis points, 365 basis points, and 414 basis points respectively. Growth outperformed value, breaking a four-week streak of underperformance. Treasuries sold off fairly sharply with the curve flattening. Gains this week were driven by factors including oversold conditions, some more traction in the peak-inflation narrative, and firmer labor market data. Expectations for a 75 bp hike in September continued to ramp up this week, with market odds up to ~85% by Friday. Next week's August CPI report will be the last key datapoint ahead of the September FOMC meeting.

US equities finished higher in a choppy Thursday session, near best levels, with the Dow Jones, SandP500, and Nasdaq rising 61 basis points, 66 basis points, and 60 basis points respectively. Treasuries were weaker across the curve. No change in the market narrative in today's session. Nothing new from Fed Chair Powell, who reiterated the Fed would keep going down the tightening path until it achieves price target. The ECB raised rates by 75 basis points. Quiet day of US data included an initial jobless claims beat.

US equities were higher and finished just off best levels in Wednesday trading. Stocks staged a broad-based rally after finishing lower yesterday when an early bounce attempt failed. Energy was under pressure on oil selloff. Market activity, it was fairly quiet ahead of Powell and ECB on Thursday. Despite today’s bounce, pain trade still seems to be to the downside on concerns about Fed's raise-and-hold strategy. WSJ's Nick Timiraos said the Fed is likely to raise rates by 75 bp at the September FOMC meeting.

US equities finished lower in a fairly choppy yet uneventful Tuesday session, with the Dow Jones, SandP500, and Nasdaq finishing down 55 basis points, 41 basis points, and 74 basis points respectively. Treasuries were under pressure with the curve steepening and extending a big backup in yields last week. No big directional drivers in play ahead of Powell and the ECB later this week. The August ISM Services beat with prices index down for the fourth-straight month and employment index back into expansion territory. Russia warned gas supplies through the Nord Stream 1 pipeline will remain halted until the West lifts its sanctions. China said it will accelerate stimulus in Q3 but stopped short of announcing specific measures. OPEC+ surprised with a 100K barrel per day cut at its Monday meeting though the move is seen as largely symbolic.

US equities were down for the week, with major indices lower for the third consecutive week. Treasuries were weaker with the curve steepening, a move that seemed to lack a clear catalyst other than the ongoing flurry of hawkish central-bank takeaways. Materials lagged, seeing weakness across industrial metals and chemicals. Energy was a slight relative outperformer despite weak crude. There were several economic reports of note this week, the primary focus being the August's nonfarm payrolls report. The path of monetary policy remained the central question, with expectations firming for a 75bp Fed rate hike in September.

US equities mostly lower in Thursday trading, though just off best levels as markets rebounded from fairly morning decline. The SandP broke a four-day streak of declines, though the Nasdaq posted a fifth consecutive daily decline. A bit of a risk off tone to start the seasonally weak month of September as a batch of better economic data played into good-news-is bad-news narrative. August ISM manufacturing index beat with new orders, employment indexes returning to expansion territory, prices index lowest since Jun-20.

US equities were lower in Wednesday trading, ending at their worst levels and unable to sustain an early rally for the third-straight time this week; Dow Jones, SandP500, and the Nasdaq closing down 88 basis points, 78 basis points, and 62 basis points respectively. Treasuries were weaker with the curve steepening, ending near their worst levels. The Dollar was weaker vs the euro and a bit firmer on the yen cross. Gold finished down 60 basis points. Bitcoin futures were up 1.7%. WTI crude ended down 2.3%, off its worst levels but extending the 5.5% selloff in the prior session. The Bearish narrative gaining some renewed traction on concerns about elevated valuations, deteriorating technicals, negative seasonals for both market and earnings revisions, heightened ECB hawkishness in the face of heightened growth risks and a lackluster China credit impulse in the face of Covid and property market headwinds.

US equities lower Tuesday, with the major indices all down about 1%. The SandP is now down over 7% since 16-Aug and closed below 4K for the first time since 26-Jul. Energy/crude under notable pressure. The market reversed gains this morning (which seemed to stem from better energy headlines out of Europe) in response to reports that Taiwanese soldiers used liver ammo to fire on a Chinese drone.