The market’s mood flipped from risk aversion to risk seeking, as Covid variant concerns appeared to recede. The S&P500 is currently up 1.7%, and commodities are higher. Risk-sensitive currencies, though, merely halted their recent declines, while bond yields are little changed.

The risk-averse mood of the past few days intensified amid rising concerns about the economic impact of new Covid variants. The S&P500 is currently down 1.9%, and commodities, bond yields and risk-sensitive currencies are commensurately lower.

A risk-averse mood again weighed on major asset classes. Surveyed inflation expectations in the US rose further. The S&P500 closed down 0.8%, and bond yields and risk-sensitive currencies fell slightly.

A slightly risk-averse mood prevailed, without obvious news catalyst. The S&P500 is down 0.4%, and bond yields are slightly lower, while the US dollar and defensive currencies outperformed.

The US dollar and bond yields fell after Fed Chair Powell said conditions for tightening were some way off. The S&P500 is up 0.3%, earlier making a record high.

Markets reacted to a surprisingly strong US inflation report. The S&P500 is down 0.4% on concerns the Fed could tighten earlier than indicated, and bond yields and the US dollar are higher.

Equity markets remained upbeat, anticipating supportive earnings reports. The S&P500 is up 0.3% to a fresh record high, and bond yields are higher, although the US dollar also rose.

Markets flipped back into risk-seeking mode without any obvious catalyst on the day. The S&P500 rose 1.1% to a record high, bond yields rose, and risk-sensitive currencies outperformed.

Equity markets were in defensive mode, as Covid variant spread raised concerns about economic recovery. The S&P500 is currently down 1.0%, bond yields are slightly lower, and defensive currencies outperformed.

Equity and bond market sentiment was helped by benign Fed minutes, the S&P500 currently up 0.4% to a fresh record high, bond yields slightly lower. The US dollar is slightly firmer.