It didn’t take long for the breathing room to be suffocated as equities are starting to track lower again. Treasuries are also being offered on the day, so one might point to perhaps a continuation of some develeraging pressure. The dollar is firmer across the board alongside the yen, paring back some of the losses from the start of the week.Nasdaq futures are also seen down 0.9% and Dow futures also down 0.5% currently.

Prior +2.0% Market index 319.4 vs 358.9 prior Purchase index 225.0 vs 255.4 prior Refinancing index 826.9 vs 913.6 prior 30-year mortgage rate 5.49% vs 5.53% prior Mortgage activity in the US continues to take a big hit amid rising rates with the purchase index slumping to its weakest since May 2020 and the refinancing index dragged to its lowest since January 2019. This continues to suggest that there is a toll being exerted on the housing market even if prices are still yet to really cool down significantly. There’s a story to tell from the charts below: US dollar

The firm notes that:“Q1 results were strong, and while guidance was largely maintained, the outlook has become more uncertain. Some of this appears to be already in the price, as the market has moved ahead of earnings and therefore implies lower revisions ahead. But until expectations are reset lower, if recession worries don’t ease, we think that equity upside will be capped, at best, and that investors will continue to sell rallies.“That’s a fair argument considering that inflation and cost pressures are here to stay for longer. Adding to that will be the tightness in consumer spending, not to mention the rougher global growth outlook (recession fears) for the time being.