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🕹Triplets of Fear🍄

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The equity market extended its drop from Friday as the Fed rate hikes theme continued to play out. Early gains were erased quickly as the clock ticked. Market participants seemed to accept the fate that stocks will go lower as rates drift higher.

It wasn’t without evidence. Fed President Neal Kashari on Monday mentioned that he was delighted to see how the stock market had sold off after hearing Uncle Powell’s speech at Jackson Hole. This is a solid testament to the conviction of the Fed to bring inflation back to 2%.

The S&P 500 is around a level below its 50-day moving average and signals a collapse of confidence for the equity market to generally trend higher. All eyes are on Friday’s job report.

🧸The bond is unusually calm📉

It seems that bond traders had it coming. They could have positioned well into Uncle Powell Jackson Hole’s speech and thus less volatility seen compared to stocks. It is a possible sign that the bond market was nervous and priced in adequately with a view that a hard landing on the inflation fight is a high possibility.

The 2-year note rose to 3.43% last Thursday before Uncle Powell’s speech, while the 10—year bond is hovering at 3.14%. As the yield curve has inverted, it plays the music of an imminent recession or a looming downturn.

💎Bed Bath & Beyond: A future of despair🍎

As Pika Nat continued to be hurt by the counter, investors are eyeing the overhaul plan that is possibly set to be released before the market opens. A cash lifeline might not last long, and traders are watching the possibility of selling the news scenario.

The stock had retreated on Tuesday as profit-taking happened on a relief bounce. Analysts may expect an outlook on its balance sheet and the recent financing options. More insights are required into its cost-saving initiatives.

That may help to ease concerns from suppliers and help the company to retrieve inventories, which is reportedly more difficult as vendors are suspicious of the company’s financial health. Any liquidity can help to reduce short-term liquidity risk and gives the company more breathing space to solve its bloating inventories.