Increased volatility in the US stock market, awaiting non-farm payroll data on Friday.🤔
Speaking of expensive, this current widening of US real rates (wider) has increased its cross-asset divergence against equities, as reflected in the form of a widening gap between forward SPX PE ratio and real rates. US equities did finally have a down day as the SPX closed down -1.4%, led by weakness in tech and consumer names as bond yields blew out. However, with NFP on deck for Friday, and Apple due to report after the market close today, we would expect the next bigger move in equities to be driven off these releases.