Stanley Druckenmiller

RELIEF RALLY

Stocks opened higher today on some ever-so-slightly encouraging trade headlines. The Dow is currently up 390 points and the SPX is up 1.5%. The best performing sectors—financials and tech—are up over 2% in early trading. Real estate and utilities are in the red. The VIX Index sank back to 17 and somehow traders are in the mood to buy stocks, saying we’re “oversold.” European markets closed up by about .5% to 1%. Commodities are mostly trading higher, save gold. WTI crude oil fell at the open but recovered to $53.30/barrel. The bond market is broadly lower today. The 10-year Treasury note yield rebounded to 2.14% this morning after falling to a 20-month low. By the way, 2019’s downshift in bond rates and inflation have stoked speculation that the Federal Reserve will be cutting its policy short-term interest rate before long. Fed officials are obviously noncommittal but Chair Jerome Powell said in a speech today that the Fed will “act as appropriate to sustain the expansion.” That’s exactly what investors want to hear.


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