Stocks May Be Next to Take a Tumble: 3-Minutes MLIV

Summary

Mark Cudmore joined Bloomberg's opening trade discussion to frame a week of key U.S. data—retail sales, jobs, and CPI—as risking a temporary stagflation-like mix. He expects Treasury curve steepening, continued dollar weakness, and a tactical yen short squeeze, while warning that confusing price action and tech rotation leave equities vulnerable to a large near-term downside move.

• Retail sales came in weaker than expected; the jobs report and CPI are key upcoming data.
• Cudmore sees a stagflation-like whiff in this week's data but remains bullish on global growth for the year.
• He expects ongoing Treasury yield-curve steepening and doubts recent long-end bond strength will sustain.
• He expects the dollar to stay under pressure and sees dollar weakness as the longer-term sustainable theme.
• He views the yen rally as a short squeeze that could last a couple of months despite the six-year depreciation trend.
• He warns equities could make a big move lower in the next couple of weeks amid confusing dislocations and tech rotation.