Back to risk-on now?

S&P 500 found relief from Friday‘s premarket selling continuation, refusing to decline more before CPI. The fear was that thanks to rising oil (and oil products) prices, the figure would come in hot, fostering hawkish Fed fears – the sentiment leaned heavily on the bearish side, allowing me to call instead for S&P 500 and Nasdaq spike and then relief rally after the data was published (and came in line, which the market understood as „inflation under control“ message).

Inflation worries are again on the back burner, and that made for quite some moves in cyclicals and interest rate sensitive names. Gold recovered a great deal of preceding day‘s drop – silver less so, and the dollar was little changed, which sends a message about its prevailing direction in itself.