Treasury auction offers no lasting impact
The S&P 500 is down 72 points, or 1.75% on the day and narrowly clinging to levels just above the earlier lows. Another 3 point decline will crack it.
There was some relief after the strong Treasury auction but it has been fleeting. The combination of tech selling and inflation worries are feeding on each other. There are some massive divergences more broadly with energy shrugging off these moves and commodity names near the highs.
Ultimately, I don’t think there’s any reason to sell until the Fed says so but tomorrow we get PPI which will also be high. That will be followed by a strong retail sales report on Friday along with UMich sentiment and its influential reading on inflation expectations.
In the past few minutes the market is showing some life, trying to carve out an intraday double bottom.