Dow Jumps Most In 30 Months, Dollar Dives, Cryptos Crash As Bonds Barely Budge

A full-court press weekend of press by WH officials (Mnuchin gushing hope) and sure enough… a big bounce in stocks…

China stocks rebounded in the afternoon session (National Team again?)

But European stocks bloodbath’d below Friday’s lows…

And once Europe close today, US equities exploded…

But everything started in US markets with the S&P 500 finding support perfectly at its 200-day moving-average…

The Dow was the first to erase Friday’s losses, followed by S&P and Nasdaq and Trannies into the close (Small Caps remained red from Thrusday)…

Nasdaq outperformed – up 3.25% today!! All started as Europe closed…

Today was the best day for The Dow in two-and-a-half years!! & 3rd Biggest Point Gain in History

Small Caps managed to get back into the green for 2018 today along with Nasdaq but Dow, S&P, and Trannies remain red.

VIX tumbled back to a 20 handle but the term structure remains inverted…

Big Tech was the big leader today with MSFT, AAPL, and NFLX soaring…all started as Europe closed…

Facebook hit new cycle lows into a bear market… then exploded higher to close green!!!

Banks rebounded nicely (but only JPM and GS managed to recover the Friday losses)…

Energy stock rebounded even as WTI/RBOB slipped…

But even as bank stocks jumped, bank credit kept screaming higher, tracking the lagged stresses in the dollar funding markets…

Given the giant moves in stocks, Treasuries were largely unimpressed with 30Y yields up less than 1bps…

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For some context – 10Y Yields traded in a 2-3bps range all day… This is the 22nd straight session that 10Y Yield have closed with a 2.8x% handle.

While stocks rebounded at the European close, the dollar index did not, tumbling to its lowest close since Feb 15th…

The ruble was also hit hard and Russian stocks sank as globally sychnronized diplomatic expulsions struck investor appetite…MICEX is at 6-week lows…but as the dollar kept sinking so the ruble rebounded to end the day higher…

It was an ugly day for cryptos with Bitcoin battered back below $8000 after headlines about Twitter banning crypto/ICO ads…

Dollar weakness sparked a bid in PMs (with silver leading) but crude and copper disappointed…

For now, Black Monday has been deferred…

Bonus Chart: Everything reversed on the European close today… except the dollar which kept tanking. If we had to guess the dollar funding stress is crushing a European bank (cough Deutsche Bank cough) and once that market was closed, it eased the pressure on the rest of the US banking system… just take a look at what happened to EU and US banks…