Dip buyers continue to assert themselves in stocks and oil


The rebound extends

The S&P 500 is more than 50 points above the lows of the day and oil has erased its losses in a sharp intarday turnaround.

The S&P 500 fell as low as 2855 in the aftermath of the soft ISM non-manufacturing data only to embark on an impressive turnaround shortly after. Now it’s up 22 points to 2909.

The buy-the-dip mentality in stocks is well entrenched and when markets turn, they tend to turn fast. However the day ahead will be a big challenge with non-farm payrolls to come.

Right now the market is optimistic about the Fed cutting rates twice more this year but the Fed can only provide so much stimulus. The cost of capital isn’t the problem right now, it’s tariffs and trade.


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