Stocks & Bonds Jump As Powell Pontificates, Cryptos Dump'n'Pump US equity markets extended yesterday's rational exuberance, accelerating higher as Powell faced Congressional hearings and promised 'to the moon' for everything (actually he pretty much said nothing...which is exactly what the market was hoping for). Interestingly, the moment Powell's hearing ended, some selling arrived. Nasdaq outperformed on the day and the Dow lagged... For context, here is the market's performance since the FOMC statement hit last week. The Nasdaq is the leader with Dow and Small Caps underwater and S&P holding modest gains... Another day, another well-engineered short-squeeze rescues the world... Source: Bloomberg Value stocks have recovered all of Bullard's bearish battering... Source: Bloomberg Microsoft broke above the $2 trillion market cap... Source: Bloomberg But the big headlines were in crypto markets where the world and their pet rabbit proclaimed the death of bitcoin for the 1 millionth time after more "China crackdown" headlines sent cryptos crashing... but by the close it was back in the green for the day having bounced off 'unch' for 2021... Source: Bloomberg Ethereum followed a similar dump'n'pump path... Source: Bloomberg Most of the 'bitcoin proxy' stocks saw a very similar pattern, but MSTR remained notably lower on the day... Source: Bloomberg Bonds were bid across the curve with the belly outperforming (5Y -3bps, 2Y -2bps, 30Y -1bps). From the FOMC, 30Y is still -8bps and 5Y +8bps... Source: Bloomberg Despite equity gains, 10Y Yields tested up to 1.50% (the pre-FOMC line in the sand) but were unable to hold it... Source: Bloomberg The dollar gave back some more of its FOMC/Bullard-Bomb gains... Source: Bloomberg Copper made a comeback today after some recent pain as crude and PMs faded modestly despite a weaker dollar... Source: Bloomberg But some context is required for Dr.Copper's "rebound"... Finally, despite all the dovishness, the market's expectation for the first Fed rate-hike remains solidly priced in for 2022... Source: Bloomberg Tyler Durden Tue, 06/22/2021 - 16:00