- Stocks extended their recovery from deeply oversold levels, with traders debating whether central banks' aggressive stance should be moderated to avoid a hard landing.
- The S&P 500 experienced its best two-day gain since April 2020. Tesla rose even after Elon Musk resurrected his $44 billion bid for Twitter, which rose 22%. In addition to the equity short squeeze, soft economic data gave bulls reason to be optimistic about policy. Job openings in the United States have fallen to a 14-month low, which may coincide with the Federal Reserve's concern about a hot labor market. Bond yields fell in tandem with the dollar.
- The debate over peak hawkishness has heated up following a dovish surprise from Australia's Central Bank and bond purchases by the Bank of England. The concept of a Fed pivot, on the other hand, has been met with skepticism. For one thing, there is a widespread belief that little has fundamentally changed to sway policymakers away from their primary goal of lowering inflation.
