{"id":63559,"date":"2022-08-29T09:07:25","date_gmt":"2022-08-29T13:07:25","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=63559"},"modified":"2022-08-29T09:07:25","modified_gmt":"2022-08-29T13:07:25","slug":"coffee-with-greta-jackson-hole-selloff-continues","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/08\/29\/coffee-with-greta-jackson-hole-selloff-continues\/","title":{"rendered":"Coffee With Greta: Jackson Hole Selloff Continues"},"content":{"rendered":"

DJIA Futures: <\/b>-218 (-0.7%)<\/span><\/p>\n

SPX Futures: <\/b>-29 (-0.7%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-111 (-0.9%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are lower as traders continue to dump risk assets after hawkish comments from the Fed Chair on Friday.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Jackson Hole Selloff Continues<\/span><\/h2>\n

Futures are sliding as concerns about tighter monetary policy continue to weigh on the market after Fed Chair Jerome Powell\u2019s Jackson Hole speech last week.\u00a0<\/span><\/p>\n

Powell struck down market expectations the bank will pivot to a smaller rate hike at its next meeting.\u00a0<\/span><\/p>\n

The major indexes all turned negative for August with Friday\u2019s drop.\u00a0<\/span><\/p>\n

CME Group\u2019s <\/span>FedWatch<\/span><\/a> Tool shows 66.5% of traders expecting the Fed to enact another 0.75% rate hike at the September meeting.\u00a0<\/span><\/p>\n

Powell said the central bank will lift interest rates as much as needed to tackle high inflation, even if it causes an economic slowdown.\u00a0<\/span><\/p>\n

He said getting inflation under control will take \u201csome time\u201d and will require bringing \u201csome pain to households and businesses\u201d.<\/span><\/p>\n

Powell said those are the \u201cunfortunate costs of reducing inflation\u201d.\u00a0<\/span><\/p>\n

Yields Pop on Fed Expectations<\/span><\/h2>\n

Treasury yields are pushing higher following Powell\u2019s speech on Friday.\u00a0<\/span><\/p>\n

The 2-year Treasury yield is up 5 basis points to 3.45% while the 10-year yield is up 7 basis points to 3.10%.\u00a0<\/span><\/p>\n

That yield curve remains inverted as the market dumps bonds in anticipation of a recession.\u00a0<\/span><\/p>\n

Bitcoin Drops Below $20,000<\/span><\/h2>\n

Bitcoin dropped back below $20,000 over the weekend after Powell\u2019s hawkish comments at Jackson Hole.\u00a0<\/span><\/p>\n

The coin is trading around $19,900 this morning while Ethereum is just under $1,500.\u00a0<\/span><\/p>\n

That\u2019s the lowest level for Bitcoin since mid-July.\u00a0<\/span><\/p>\n

The sharp decline comes as traders dump risk assets across the board.\u00a0<\/span><\/p>\n

The drop is also dragging down shares of <\/span>Coinbase <\/b>(COIN) which are 2.2% lower ahead of the open.\u00a0<\/span><\/p>\n

Oil Prices Rise on Prospect of OPEC+ Supply Cut<\/span><\/h2>\n

Oil prices are rising today as the possibility of an OPEC+ supply cut continues to loom over the market.\u00a0<\/span><\/p>\n

West Texas Intermediate crude futures are up 1.3% to over $94 bbl while Brent crude futures are up 0.9% to just under $102 bbl.\u00a0<\/span><\/p>\n

Saudia Arabia\u2019s energy minister raised the idea of reducing production last week in order to support prices.\u00a0<\/span><\/p>\n

OPEC+ is set to meet on September 5 to vote on supply levels for October.<\/span><\/p>\n

In Case You Missed It<\/span><\/b><\/h2>\n