Stocks Fade Ahead Of Payrolls As Bonds, Oil Convinced Hard-Landing Is Inevitable

Stocks experienced a mixed day with the S&P opening flat, rising, falling, and then closing modestly red as it tracked the 0DTE delta flow. The market seems to be in a wait-and-see mode ahead of the critical payrolls report. Tech and communications sectors staged a rebound, with Tesla and Amazon leading gains. Treasury yields sank for the third consecutive day, reaching 2024 lows, as the bond market becomes increasingly convinced of a hard landing. Oil prices hit new 2024 lows despite a massive crude inventory draw, due to global recession fears. The yield curve disinverted for the first time in 26 months, signaling a recession. Gold retested its all-time highs, anticipating the next mega stimulus package. Total US debt is on pace to hit a record $36 trillion in three months, setting the stage for significant debt monetization.