Headwinds…

The stock market is trying to ignore the fact that market interest rates did not go down after the last Fed cut. Instead, we see a market that is hoping for good earnings numbers. No doubt we will see some good earnings from core companies, however the Tech and AI kind of names are going to see some headwinds.

Those headwinds led to the market top seen yesterday. At the same time Bonds saw a bottom occur and will see some reversion to a median level. The market environment will now need to keep in mind that the working interest rate will now probably revolve around 3.88 %, not the 3.0 % that the market was referring to a few weeks ago.