Last Friday, the S&P 500 experienced its biggest single-day loss of 2026. And funny enough, it was actually because of good news. Let me explain.


Last week, multiple US job reports came out, all beating consensus and forecasts by a wide margin, which reflects that the US economy is still going strong.
The NFP data came in at 172K, doubling the consensus estimate of 85K.
The problem is, a big reason why the Fed started cutting rates was because the job market was deteriorating. "Downside risks to employment have risen," as stated in the September 2025 FOMC statement.
With a strong job market report, there's no reason for the Fed to cut rates again.
This sparked a massive sell-off in risky assets like the S&P 500 and, in turn, Bitcoin.
So, to see a global risk-on mode once again, we need inflationary and growth data to come in soft.
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