So why are we so red today? Because the PMI came in over 58 way ahead of forecast. Great business activity booming, golden age right? Well no it also means prices are going up and it greatly increases the need for a second rate hike.
At this point not even sure what to believe if you read the explanation for the high reading it suggests the economy should be booming but only Trump and Bessent believe that so is the number wrong who knows but it's why the markets are all red today they are assuming now we'll have a second rate hike coming soon.
But now the 5 10 and 30 year treasury yields are all skyrocketing today and higher yields means higher interest rates it's bad not good.
Peter Baker of the NY Times is on now saying it's blatantly obvious that the admin and in particular Bessent are just not "accurate" in what they say. They keep saying prices will come down quickly and they keep in fact going up and the PMI showed that as it shows clear price inflation across the board.