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Nasdaq, S&P, Dow slide after stunning gains; bond market closed for Veterans Day

ozgurdonmaz Major market averages trade mixed on Friday morning after Thursday's breakneck rally. Early on and the Dow (DJI) dropped 0.3%, the S&P 500 (SP500) gained 0.1%, and the Nasdaq Composite (COMP.IND) was +0.3%. "For once the US CPI release broke with the bad habit of surprising to the upside," ING said. "And the market…

Wall Street sign post in front of Stock Exchange building in New York, USA

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Major market averages trade mixed on Friday morning after Thursday’s breakneck rally.

Early on and the Dow (DJI) dropped 0.3%, the S&P 500 (SP500) gained 0.1%, and the Nasdaq Composite (COMP.IND) was +0.3%.

“For once the US CPI release broke with the bad habit of surprising to the upside,” ING said. “And the market was quick to jump on the ‘pivot’-bandwagon, with a larger Fed hike of 75bp for December now seen off the table, and if anything it now seems that the market is shifting to discussing whether it could be 25bp rather than 50bp next month.”

The bond market is closed for the Veterans Day holiday following a day where Treasury yields fell sharply after the cool core CPI monthly rise brought buyers out of the woodwork.

“I don’t think there is anything inconsistent in saying that markets continue to be set up for a rally (technicals, seasonals, better European near-term energy outlook etc.) while also thinking next year could ultimately be pretty bad,” Deutsche Bank’s Jim Reid said.

Even “with the surge in risk sentiment, the Fed’s preferred yield curve measure (18m3m – 3m) for predicting the cycle spectacularly entered inversion territory yesterday, falling -37.1bps to -13.7bps,” Reid added.

On the economic calendar today, the University of Michigan’s preliminary measure of November consumer sentiment came in lower than anticipated at 54.7 compared to the consensus figure of 59.5.

Among active stocks, Blue Apron (APRN) tumbled on dilution fears.

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