FED cut exp for 2024 down to 30bps / JBG's leading / #HYG risk building on #highforlonger

The market no longer expects two Fed rate cuts this year, with only 31 bps of reductions currently priced in - after election? >>> 7y USR auction last night ''tailed again'', JGS's leading duration yields higher (certainly not helping), didn't help risk into close, DOW back around its 50dma, though NVDA closed on highs, #VIX too low really, and/or perfect for #hedging needs!
SNB chief sees ‘small upside risk’ for inflation forecast
#HYG >>> Very important'A rising share of the $8.9tn high-grade US corporate bond market is at risk of being slashed to junk status, with rating agencies' expectations of downgrades exceeding upgrades for the first time since the end of 2021.' >>> BMO was dragged lower yesterday as they set aside reserves for bad loans..
China is pouring almost $50 billion into its chipmaking efforts despite U.S. sanctions. Six of China's largest state-owned banks are investing in a fund to boost the country's tech efforts
Jim Chanos known for his bearish bets on Enron and Tesla, is facing a lawsuit for alleged misuse of company funds. Tesla CEO Elon Musk used the opportunity to hit back at one of his hardest critics
Gaza war will last at least another seven months, says Israel
6 NATO countries are planning to build a 'drone wall' to defend themselves against Russia, reports say
Financial conditions are significantly easier than when the Fed started raising interest rates in March 2022:” Apollo’s Slok. Since Nov. 2023, when the FOMC started talking about cuts instead of hikes, the S&P 500 market cap is up $9 trillion
Big Pharma steps up race for AI-discovered drugs - makes sense!
Rosenberg : I keep hearing this has been an ‘earnings driven’ market. Sure. EPS +6% YoY and the S&P 500 is up +26%. A 3-point multiple expansion from Oct-May is a near-2 SD event and at ~21x on the fwd. P/E, this is the top decile overvalued equity markets of all time (IMHO - always tricky to judge with Mag7 involved..)
GS : All-Time High Number of Passengers Passed Through TSA Checkpoints at US Airports Last Weekend