INFORMA: No one ever expected today's action. The holiday-shortened day brought massive selling, from just about everyone, including hedge funds, bank portfolios, Japanese trading accounts, and mortgage servicers. There was asset allocations into stocks and selling of Treasuries to get dollars to book profits.
There was no major reaction the Michigan consumer sentiment data, despite a strong 96 reading. Construction spending was weaker at -0.9%, but the data got lost in the stronger than expected ISM numbers. Players glommed onto low inflation and stronger economy.