Goldman: Stocks Ignored Hot CPI & PPI; Ignored Market Length, Ignored Rising Geopolitical Tensions, Ignored Rising Rates, & Kept On Doing Its Thing

By Bobby Molavi, Goldman managing director and trader

Nasdaq had been up 14 of the last 15 weeks…and then last week we saw it run out of steam, trading down 150bps on the week with rates rallying back to 4.3% on the back of hotter than hoped for CPI and PPI prints and some marginally hawkish fedspeak. As a result what had moved from March to May, now points to June in relation to first cut and the market has moved from a bull case of 6 cuts for 2024 to a more moderate 4.