Fed Chair Powell’s initial comments spiked stocks:

*POWELL SAYS FED TO SEEK INFLATION THAT ‘AVERAGES’ 2% OVER TIME

…then ‘moderation’ sent them reeling:

*POWELL SAYS ANY INFLATION OVERSHOOTS WILL BE MODERATE

but he later reassured that they would let inflation run and things took off again…

*POWELL: SEEK TO RUN INFLATION ABOVE 2% AFTER PERIODS BELOW 2%

Then Pelosi triggered a drop in stocks (hitting right as Europe closed)…

1129ET *PELOSI SAYS NOT BUDGING ON STIMULUS, REPUBLICANS HAVE TO MOVE

This didn’t help!

1315ET *Kaplan: Markets Need to Understand How to Operate Without Fed Support

And then Pentagon headlines spooked markets a little late on…

1420ET *CHINA MILITARY SAYS U.S. WARSHIP EXPELLED NEAR PARACEL ISLANDS

And then Pelosi again…

1515ET *MEADOWS-PELOSI TALK DOESN’T APPEAR TO YIELD BREAK-THROUGHS

1530ET *PELOSI SAYS SHE IS STICKING TO HER DEMANDS ON STIMULUS

And in the end The Dow notably outperformed as Nasdaq swung around desperately trying to stay green but failed…

The Dow’s big mission was get back to even on the year…

Source: Bloomberg

28,538 was the magic number (green YTD) but the machines failed to hold it…

But there’s a growing chasm between winners and losers…

Source: Bloomberg

But Big-Tech stocks ended lower (after yesterday’s meltup)!!

Source: Bloomberg

“Inconceivable!”

Across the asset classes the volatility was similar (from the Powell headline drop)…

Bonds definitely suffered most…

Source: Bloomberg

with 10Y Yields (which fell immediately after Powell spoke) soaring to 2-month highs…

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Source: Bloomberg

And 30Y TSY yields hitting 1.50% for the first time since June…

Source: Bloomberg

Breakevens initially plunged before taking off to its highest since January…

Source: Bloomberg

Real Yields increased (back below -1.00%)…

Source: Bloomberg

Gold ended the day lower despite Powell’s “money printer go brrr” speech but after a big pump and dump…

The dollar mirrored gold, dumping on Powell’s initial comments but then rocketed higher…

Source: Bloomberg

Cryptos were sold today…

Source: Bloomberg

Gold is down on the week as copper leads…

Source: Bloomberg

Oil prices fell, unable to scramble back above $43…

Finally, some context for today’s move in bonds…

Source: Bloomberg

And one wonders what message VIX is sending? Everyone levered long calls or is this protection-overlays beginning?

Source: Bloomberg

Via Zerohedge