The S&P 500 Index closed up over 1.6% in the holiday-shortened week on a trade war cease fire and expectations of rate cut.
Last Friday’s robust jobs report caused the markets to gap down apparently because the positive news on hiring will give the Fed reason to not be as aggressive on the markets’ predicted future rate cuts. Gold and bonds (TLT) also dropped.
The 10-year and 3-month treasury yields are still inverted, which is a warning sign for slowing economy and recession, although the markets look higher to us.
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