2024-02-02: Markets

Seems like very little can get in the way of the US economy these days. The policies enacted over the past 2-3 years and the abundant energy of the US consumer are having unexpected, for some, results. The labor market report on Friday was notable not only for the headline numbers but also for the revisions to last month’s statistics, all very favorable. As a consequence expectations of further monetary policy action have been revised to incorporate a less sanguine view (from interest rate perspectives) of the future.
     All of this did not appear to bother the markets much, except for Emerging Market equities and High Yield bonds, each of which have their own set of problems (China and rising defaults, respectively) and produced consistently negative returns over the week.
    
[Cover Source: Axios]