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RELIEF RALLY OR HEAD FAKE? BONDS STILL HOLD THE MARKET’S ATTENTION

[Chart courtesy of MarketWatch.com]
- Moving the market
Stocks managed a respectable rebound today after four straight losing sessions, helped by a pullback in oil prices. But if you were hoping for a dramatic change in the script, the bond market had other ideas.
The inflation report was largely in line with expectations, yet the bigger story was what happened afterward: investors quickly shifted from asking whether the Fed will hike rates to wondering how many more hikes it may ultimately need.
That concern showed up in higher bond yields, with the 2-year yield pushing to its highest level in over two years.
Meanwhile, oil took a breather after this week’s geopolitical-driven surge, gold couldn’t hang on to its early gains, and even Bitcoin was reminded that higher interest rates still matter, “digital gold” label or not.
So, despite today’s 1% relief rally, the real drivers remain the same: rising yields, elevated energy costs, resilient employment, and central banks that are still leaning hawkish.
In short, the market’s tug-of-war between bulls and bears is alive and well, and today’s bounce felt more like a timeout than a knockout punch.
The question now isn’t whether volatility sticks around, but which side finally gains enough conviction to win the next round: the bulls or the bears?
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