Excerpt from Bloomberg quoting DataTrek co-founder Nick Colas:
…. “Zooming in on the quarter to date, the grind upward may have been a bit bumpier, but the S&P 500 has still outperformed. That’s mainly because it bottomed on June 16, according to Nicholas Colas, cofounder of DataTrek Research. That eventful week, he says, also saw the Nasdaq Composite and the Russell 2000 setting their lows on June 16, the 10-year Treasury yields easing from the 2022 highs they set on June 14, and the Federal Reserve announcing the first of two 75-basis-points rate hikes on June 15….
….Also on July 14, the US dollar peaked year-to-date, rising to 124.1 based on the Fed’s Nominal Dollar Index. Two years ago on March 23, Colas noted that the greenback also hit its high to coincide with the lows for global stocks on the same day. Both are driven by risk appetite, and the peak for the dollar in 2020 and possibly again this year meant that the peak for risk aversion was also in. That then allowed stocks that didn’t benefit from haven flows into the US to begin to perform better”….
Full article here on Bloomberg.