Traders Fall Back In Love With Stocks & Bonds After Terrible-Tuesday, Bitcoin Breaks Above $50k

A quiet macro day allowed a post-VIXperation market room to do what it does best, 'sell-vol, and bid stocks' as the US majors did their best to erase yesterday's ugliness and VIX puked back to a 14 handle.

Because, well why not... love is in the air...

VIX actually began to puke right after the cash close last night...

The Nasdaq rallied back into the green post-CPI and the S&P 500 got close, Small Caps are still laggards but made up a lot of ground from Terrible Tuesday...

'Most Shorted' stocks recovered more than two-thirds of yesterday's losses...

Source: Bloomberg

Magnificent 7 stocks rebounded but only modestly (only around 30% of the drop from Monday highs)...

Source: Bloomberg

Treasuries were bid today with the short-end outperforming (2Y -9bps, 30Y -2bps), recovering some of yesterday's losses...

Source: Bloomberg

Given the exuberance in bonds and stocks, we note that rate-cut expectations barely budged with June still the most likely timing for the first rate-cut...and the market is still pricing in less than 4 rate-cuts this year.