Stocks and Treasury yields surged higher in overnight trading and continued higher in early trading as stimulus optimism has investors believing inflation is finally coming, even though the last round of stimulus was not inflationary.
The Markit Services PMI slightly expanded for the second month in a row in September with a 54.6 print. The “official” ISM Services PMI showed better-than-slight expansion for the second month in a row with a 57.8 print for September. The ISM reported a strong improvement in business activities, new orders, and prices paid.
Stocks closed higher on light volume and Treasury yields were slammed higher as investors finally believe the next stimulus package will be very inflationary, even though it won’t be.