Good for Bad
Weekender June 3, 2023
The era of procrastination, of half-measures, of soothing and baffling expedients, of delays is coming to its close. In its place we are entering a period of consequences. Winston Churchill
G
ood morning and welcome to the Weekender for Saturday, June 3, 2023.
It was a stellar week for the S&P 500, which rose by 1.8%. Primary drivers for the week’s equity moves were legion. First, the debt ceiling debacle, a talisman for the voodoo political environment we find ourselves in, was solved. Taking credit for pulling the country back from the brink in a nationally televised address, President Biden told the nation that he was the man who could mend the tears in the national fabric, clearly a nod to, and unofficial commencement of, his run for re-election. Second, employment numbers, this Weekender’s primary topic, came in strongly suggesting the Fed’s record-breaking interest rate hikes have had limited impact on the labor market. Third, artificial intelligence, the gift that keeps giving, continued to lift the big tech names. S&P 500 Index Levels (Source: Bloomberg) 4,766
4,800 4,300
4,077
3,800
2,674
2,800
1,800
3,970
4,221 4,282
3,231
3,300
2,300
3,840
3,756
4,109 4,169 4,180
2,044 15
2,507
2,239
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It’s going to be a long weekend for the US Treasury. With the debt ceiling lifted, the supply of government bills and notes will flood global financial markets beginning Monday. Areas outside the treasury’s wake will be deafened by a one trillion-dollar sucking sound draining liquidity from Weekender (Good for Bad)
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