FED Crushes Markets With No Pivot + NFP Shows Economy Is Weak As Commodities Soar

FOMC day saw a volatile day with US stocks crushed after Powell disappoints with no pivot, telling the market more rate hikes coming as inflation isnt going away.

Powell comments caused the terminal rate to spike along with bond yields across the board to move higher. The DXY rallied & commodities fell along with stocks n Wednesday.

On Friday the NFP was released & the news sent stocks rallying strongly into the close after another volatile session as the market tried to digest the news of a better then expected beat on the jobs report.

Reaction from NFP's caused the DXY to give back all of its gains from the week with a massive fall, sending all commodities spiking higher with big moves from Oil up 5%, Gold 3%, Silver 7%, Copper up 8% as well US indices rallying from a weaker dollar.

Yields had eased off slightly as well which supported markets on Friday as well but only slightly.

I reviewed two different charts from the NFP's from March to October period, showing over 490k full time jobs lost, offset by an equal amount in part time.

US stock indices were reviewed including SPX, DOW & NDX for the week & what we could see going forward.

DAX index was shown & its relative strength compared to US stocks, as well the Aussie XJO index that looked similar to DAX testing the trend line as support, as it too is looking bullish with only 200 MA to move beyond.

Macro look ahead for the week discussed with US mid term elections from Wed Aussie time & CPI report comes out on Fri.

Links:

https://www.cnbc.com/world/?region=world

https://www.zerohedge.com/markets/powell-pulls-rug-out-euphoric-fomc-statement-reaction-terminal-rate-jumps

https://www.zerohedge.com/markets/goodbadugly-jobs-data-sparks-chaotic-pumpndump-across-markets

https://www.zerohedge.com/markets/something-has-snapped-unexplained-23-million-jobs-gap-emerges-broken-payrolls-report

https://www.forexfactory.com/calendar?week=next#closed

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