Hints of Normality That Could Vanish in a 'Flash'
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S&P Futures are down ~16 to 2,679, what some may call a healthy pullback given the melt-up into the prior close, but anxiety remains heightened over the recent meltdown/“flash crash”/whatever you want to call it. The VIX is holding steady around 30 while 10-year yields couldn’t break above 2.80% overnight and Bitcoin continues to bounce, now back above $8,000.
Fed’s Kaplan, whose hawkish comments spooked the market Friday, in a speech today called the market correction and volatility "healthy." This follows Bullard yesterday talking down the potential of four rate hikes this year, though not surprising given he is among the more dovish officials. We still have Dudley, Evans and Williams on tap to opine later today.