Stocks rallied on Monday, ahead of an eventful two days. Meanwhile, the market is also busy repricing its rate path for the policy, with Fed Futures now seeing fewer than three rate cuts in 2024.
![Fed Rate Cuts Fed Rate Cuts](https://d1-invdn-com.investing.com/content/picd10ca674b339b4d47c9ae5dbda95a30b.png)
Fed Rate Cuts
This appears to be due to a change in the market outlook for , with 1-year inflation breakevens now at their highest since July 2022 and 1-year inflation swaps continuing to move higher today by 1.1 bps to 2.635%.
![US Inflation Swap US Inflation Swap](https://d1-invdn-com.investing.com/content/pic9a651e90c7268e8450d61f7299cea68d.png)
It looks mainly like this results from pushing higher again to $2.74.
![Gasoline Futures-Daily Chart Gasoline Futures-Daily Chart](https://d1-invdn-com.investing.com/content/picb1f2ed5d84d14820aa886c1706a8fbdb.png)
Alongside that, this also stems from moving up and clearing that consolidation zone at around $82.
![WTI Crude Oil-Daily Chart WTI Crude Oil-Daily Chart](https://d1-invdn-com.investing.com/content/pic91357cbebe01928e4a4569a06454a253.png)
Surprisingly, the has behaved nicely, still below the 4.35% level.
![US 10-Yr Bond Yield-Daily Chart US 10-Yr Bond Yield-Daily Chart](https://d1-invdn-com.investing.com/content/picccc7ccb320bb00b4d1b45742c653c6e2.png)
Remember that what matters most about the Fed and rates is that the market is repricing the path of monetary policy, and monetary policy works through financial conditions.
As the market reprices and adjusts, those conditions will tighten, and the tightening of conditions will impact the stock market.
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