June Gloom: Nasdaq Suffers Biggest Loss Since October As Dollar, Bonds, Economy Plunge

US Economic data in Q2 was the most disappointing since Q2 2011…

June was a rollercoaster:

Nasdaq’s worst month since October (breaking a 7 month win streak)

FANG Stocks worst month (first losing month) since November

Dow best month since February

Small Caps best month since November

Risk-Parity Funds lost 1.6% in June – the first loss since November

10Y Treasury Yield biggest rise since November

Treasury Yield Curve unchanged.

Gold’s worst month since November

USD Index feel for 5th of last 6 months

WTI fell for 4th straight month (despite last 7 days up – best streak in 6 months)

Small Caps were the biggest gainers in June, Nasdaq the biggest loser… the S&P (light green) bounced of unch for June yesterday and its 40DMA…

The Dow manage to outperform, helped by the banks, the long bond ended June unch, Gold down, and WTI down worse but making a big comeback…

FANG Stocks could not catch a bid…

Notably, as both high-beta stocks and bonds are hammered in the last two weeks, so Risk-Parity funds are coming under serious pressure…

The Dollar Index tumbled in June to its weakest since Sept 2016…

Led by a 3.7% surge in the Loonie (JPY was 1.5% weaker against the dollar in June)…

Treasuries saw the biggest moves in the month… Fascinatingly, 30Y actually saw yields lower on the month even as the rest of the curve all rose (led by 5Y)…

By a miracle of modern algos, the 2s10s Treasury curve ended June perfectly unchanged thanks to the dramatic steepening in the last 4 days…

Copper had the best month of the commodity bunch as perhaps signals that China is folding on its tightening efforts are appearing…big finish to the month for crude too…