Market update - March 2nd

The financial world is buzzing with fresh bout of volatility as inflationary pressures and hawkish remarks from central bankers continue to dominate sentiment and price action. The 10Y Treasury yield has hit an impressive 4.06% - the first time since November - while the terminal rate for fed funds futures has skyrocketed to a new high of 5.49%. But the news doesn't stop there. This morning's release of unit labor costs, printing at a staggering 3.2% (vs. expected 1.6%), coupled with Euroarea's February inflation rising to an astounding 8.5% YoY (8.3% est) and core inflation accelerating to a record 5.6% (5.3% est), has sent fresh waves of panic rippling through the market.

Quickly checking on the markets, the S&P 500 has seen a dip of 0.50%, while the NASDAQ has taken a hit of 0.85%. Adding to the indices' decline is TSLA, which has seen a massive drop of 6.8% on the back of investor day without any new models, leaving investors feeling understandably disappointed.

As we move further into the day, all eyes will be on the much-anticipated speeches from Fed speakers - Waller (V) at 2 PM EST and Kashkari (V) at 4 PM EST. The markets will be eagerly awaiting their insights and projections as they try to gauge the future of the economy in the face of these turbulent times.