Tuesday's Market Update (Feb 7, 2023)

08 Feb 2023 by rate3

From two key phrases uttered by Powell during Tuesday's question-and-answer session with Mr. Rubenstein, head of the Carlyle Group, at the Economic Club of Washington, traders chose "disinflationary process has started" and disregarded "we have to do more and raise rates more than is priced in" (if there are strong labor market reports or higher inflation reports). This led to the NASDAQ closing at 12,113, adding 1.9 percent to its opening at 11,891. At the same time, BTC increased by one percent, from 22,982 to 23,194, with two competing narratives in traders' minds: "golden cross" and "Valentine's Day massacre" (in reference to expectations of a possible sell-off on February 14th if the yearly core inflation rate is higher than 5.7 percent).