Repricing

It’s been a tough week for markets in the U.S. As you can see below, the Nasdaq 100 has corrected almost 6% and Nvidia is already in correction territory with more than 20% fall from its recent all time high. Part of the reason is the realization that rate cuts may not happen in 2024, as inflation has been picking up recently away from the target of 2%. It appears the market has started some repricing process, away from the promise of easier money into a world where even additional rate hikes are not discounted. The (inverted) treasury curve keeps moving up, with the 10 year yield above 4.62%. Next week will be key to see if the market is able to find support in the economic data: GDP for the 1Q24 will be published on Thursday, as well as jobless claims and Core PCE.

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