Video summary
The market closed on a negative note as yields surged following the release of the Producer Price Index (PPI) data, which pushed crude oil prices higher and accelerated interest rate expectations. The S&P 500 finished the session down approximately 1%, while the NASDAQ 100 dropped by 1.1% and the Dow Jones Industrial Average fell by roughly 0.6%. This decline in equities was driven primarily by the strength in yields, which climbed to 4.95% on the ten-year Treasury note, marking a significant increase from the levels seen earlier in the year and effectively resetting yield benchmarks back to 2023 figures.
The rising yields have created substantial pressure on the US dollar and precious metals, with the dollar index struggling to find support despite an initial bid, trading around 99. This environment has weighed heavily on gold, which fell by nearly $100 to break below its session lows at 4,364. The transcript highlights a stark divergence in performance between risk assets and safe havens over the past few days; equities experienced a massive acceleration of nearly 40% while gold managed only a modest gain of about 10%, suggesting that the current market dynamics are heavily influenced by the aggressive movement in interest rates rather than a broad-based economic shift.
Looking ahead, the focus for investors will shift to the Consumer Price Index (CPI) data scheduled for release tomorrow morning at 8:30 AM Eastern time, which is expected to be the main event determining the future direction of yields. The speaker notes that while crude oil prices are currently pushing yields higher, there is a possibility that yield strength may eventually abate, potentially allowing the dollar to find more appropriate levels and providing relief to gold prices. Until then, the market remains sensitive to these inflation metrics, with the upcoming CPI print serving as the critical catalyst for the next phase of trading activity.
Read the full video transcript
This is TFN,
the Tiger Financial News Network.
TFN
Headline News Update.
Good afternoon, folks. Tommy O'Brien
coming to you live from TFN. We reach
the closing bell 400 p.m. Eastern time
and it's a red day in the markets as we
get a PPI print that accelerates yields
but crude in focus today as we're
pushing 103 folks. Crude up $6.78
that was pushing yields higher already
this morning and then we got a CPI
printed excuse me we got a PPI print at
8:30. Now we get the CPI print tomorrow
morning at 8:30. That's the main event
for yields. But we got the market
trading lower with an S&P finishes the
session down about 610% right where you
went to following that 830 number
initially. NASDAQ 100 down 1.1%
29,140
off by 308 points. Dow off 339 or 610%
52,85
and the Russell off just over 1% off 29
points at 28.93. Now yields of the story
folks. Okay, you're talking about
numbers that we haven't seen in yields.
You're talking about in years. The
10-year
4.952
or even above it. 4.95
is the number on the 10ear. And that is
a run from the beginning of March where
we had a 3.98% number. You've broken
below 2024,
okay, and 25 and you're back to 2023.
Quite a move. Now, with that said,
you see where yields were coming into
the PPI print. Okay, we continue to
accelerate. You look at the dollar. The
the dollar catches an initial bid. You
pull back, we're higher from there, but
you're still trading at 99 on the
dollar. Okay, the dollar is struggling
to catch an appropriate bid with the
strength in yields,
right? There's so much strength in
yields right now that the dollar should
be higher than 99 if it had inherent
strength and eventually yields are going
to abate a bit. Right? This move is
exacerbated and even as I keep coming to
9 4.95 the number on the dollar and yeah
that's weighing on gold. Gold off $97.
You just broke below the session lows to
4364 right now. You see that
acceleration right at 3:00. But all
things considered, folks, the equities,
as I was making the case at the end of
the Tom O'Brien show there, you know, we
just traded from 70 to 96. That's almost
a 40% acceleration. And meanwhile, gold
in that same period of time up barely
10% from 4,000 to 4363. And you check
out the volume, folks. Okay, we have
some pullback, but not in the equities.
We'll finish it up. How about that GDX
volume? I'll see you at 9:00 tomorrow.