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A Subdued Session With Support Intact Ahead Of Debt Limit Talks, CPI Tomorrow

US STOCKS
  • Equities have seen a subdued day, with the S&P E-mini little changed in US hours after sliding overnight for -0.3% on the day (SPX -0.2%, Nasdaq -0.6%).
  • At 4139.75 off a low of 4131.00, support remains intact with the key short-term level seen at 4062.25 (May 4 low).
  • 10Y real yields have pushed 2bps higher but clearly don’t materially change the macro landscape, with focus firmly on upcoming debt ceiling talks and tomorrow’s CPI print.
  • It’s been a more mixed day for banks. PacWest earlier headlined for being down as much as -10% within 30 minutes of the open but has since reversed that for currently +5% on the day, whilst regional banks more broadly are flat compared to the KBW index +0.5%.

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