Over in Europe, just after they laid down the hawks, the U.S. stocks flipped back to green.
European Central Bank Executive Board member Dornz directly calls it out: by September, the case for rate hikes is already fully in place, and inflation hasn’t been solved at all.
If this kind of statement were made in the past, the U.S. market would have at least trembled three times. What happened instead? The S&P $SPY 500 erased the losses and turned higher immediately.
What logic is this?
Bad news has been numbed to it—or, more accurately, the market is numb.
Hike rates? Go ahead. They’ve been hiking for two years now, and we haven’t seen the economy fall apart. Companies make money, AI keeps burning cash, and retail investors just keep catching the dips.
And if you think one step deeper: when Europe hikes rates, it also implies the ECB believes inflation can’t be brought under control. So where does the money go? Into the dollar, U.S. Treasuries, and even $BTC $ETH —those are all options.
This V-shaped reversal in the S&P today, translated into plain language, is basically: “You panic-fear, I buy.”
When bad news can’t push the market down anymore, it’s often because good news is next.
European Central Bank Executive Board member Dornz directly calls it out: by September, the case for rate hikes is already fully in place, and inflation hasn’t been solved at all.
If this kind of statement were made in the past, the U.S. market would have at least trembled three times. What happened instead? The S&P $SPY 500 erased the losses and turned higher immediately.
What logic is this?
Bad news has been numbed to it—or, more accurately, the market is numb.
Hike rates? Go ahead. They’ve been hiking for two years now, and we haven’t seen the economy fall apart. Companies make money, AI keeps burning cash, and retail investors just keep catching the dips.
And if you think one step deeper: when Europe hikes rates, it also implies the ECB believes inflation can’t be brought under control. So where does the money go? Into the dollar, U.S. Treasuries, and even $BTC $ETH —those are all options.
This V-shaped reversal in the S&P today, translated into plain language, is basically: “You panic-fear, I buy.”
When bad news can’t push the market down anymore, it’s often because good news is next.
