TMTB EOD Wrap

Note: We will be on vacation April 13th-April 20th and there will be no posts during that time. Here for more detail.

Good afternoon. QQQs -87bpss as the hotter CPI print caused yields to spike (2 year +21; 10 year +19bps). The market is only pricing 50/50 odds of a rate cut in July now with only ~43bps worth of reductions priced in for the year. The hotter CPI print caused a reversal in the factor performance we saw the last two days with Unprofitable Tech -3.5% / IWM -2.5% / ARKK -2% while Megacap was roughly flat and consensus names down 50bps. IWM breaking down from rising wedge doesn’t look pretty. We have more inflation data on the docket tomorrow.