US equities recorded strong gains and bond yields fell as investors celebrated reassuring inflation data. The S&P 500 recorded its best week since June and hit its best intraday level in two months. Growth stocks — tech in particular— benefited the most from falling yields.

Stocks fell after the Fed dashed market hopes for an impending pivot in monetary policy in the form of a pause or slower pace of rate hikes. Nasdaq was the biggest loser (-5.6%) while the Dow outperformed (-1.4%). This was the Nasdaq's worst week since January.

CHART OF THE WEEK: APPLE HITS A NEW HIGH vs. NASDAQ 100 The only tech behemoth to emerge relatively unscathed from this week is Apple which, despite reporting slower than expected iPhone 14 sales, otherwise held up very well comparatively. Apple stock finished up 7.6% on Friday, its best day since 2020. The stock hits an all-time-high relative to the Nasdaq 100 index.

Markets rebound can be self-fulfilling. There are too many shorts who are now panic-buying call options on the S&P 500 to hedge themselves. As such, S&P 500 volatility skew is at extreme levels (i.e calls buying is extreme vs. puts buying).

Stocks were down for a 3rd week in a row on the back of turmoil in UK financial markets and signs that the Fed still has much more to tighten.

Global equities recorded a second week of heavy losses after the Fed revealed that they expected official short-term interest rates to continue going sharply higher over the next several months.

Stocks hit its lowest point on an intraday basis since mid-July on Friday as inflation fears intensified. Growth stocks fared worst, with the Nasdaq Composite falling nearly 5.5%.

The S&P 500 gained 3.6% over holiday-shortened week, lifting $SPX above 50 days & 100 days moving averages, triggering short coverings.

U.S. equities fell on Friday after a solid August jobs report failed to ease fears that the Fed would keep aggressively hiking interest rates to fight inflation.

In a week of mostly light summer trading, stocks pulled back sharply as investors became less optimistic that the Fed will be able to tame inflation without causing a significant economic slowdown.