The strong rebound we saw in US equity futures ended up giving way to a decent sell-off on Wednesday trading session; the S&P500 recorded its worst back-to-back sell-off since October 2020 and it may not be over.
The US equity futures are again in the positive at the time of writing, but the gains are hardly interpreted as a recovery; they are rather the result of a rising volatility. The risk sentiment is sour.
Now one place which could give hope for a slowdown in inflation, and a slower market selloff is oil, as the prices are under the pressure of a couple of factors.
OPEC meets today; the expectations have been as volatile as the market action in oil. The latest news suggests that OPEC is increasingly inclined to scrap its plan to raise output for January.
With the Fed pulling away support, we see the shining stars of the cheap-liquidity market falling from grace. AMC entertainment and GameStop tanked, while chipmakers and electric car makers took a heavy hit.
Traditional safe-haven gold is doing quite poorly nowadays, while Bitcoin is stable near the $56K mark, but the risks are tilted to the downside on the global loss of risk appetite.
So, I am thinking, but just thinking whether the US dollar will again be the place to park until the dust settles.
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