US stocks experienced a volatile session overnight as investors found themselves second-guessing the fallout implications of the collapse of Silicon Valley Bank (SIVB US) – in a nutshell growth stocks enjoyed a tailwind from the plunge in bond yields whereas banks wobbled badly on contagion fears following the collapse of SVB e.g. the US S&P500 Banking Index fell another -7% whereas the tech-based NASDAQ rallied +0.8%.
- We continue to look for US stocks to push higher over the coming months regarding decent dips as buying opportunities although SVB hasn’t helped this thesis.
MM remains bullish on the NASDAQ targeting the 13,500 area
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Overnight saw investors continue to flock to safe havens with US short-dated bonds soaring higher plunging the 2-year yield below 4% for the first time in 6 months.
- Our preferred scenario is US 2-year yields now rotate around 4% as calm slowly returns to financial markets.
MM is neutral US 2 years around 4%
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