WS #15465
The New York Fed's September Survey of Consumer Expectations revealed a sharp deterioration in inflation sentiment, with the one-year outlook jumping to its highest reading since May 2023. This data, combined with Treasury yields hitting 2002-era highs, has forced a repricing of interest rate risk across global markets. The result is a severe rotation out of growth and cyclical assets, with nine of eleven S&P sectors closing in the red as defensive plays dominate.
Inflation and Rate Shock
The New York Fed's September Survey of Consumer Expectations revealed a sharp deterioration in inflation sentiment, with the one-year outlook jumping to its highest reading since May 2023. This data, combined with Treasury yields hitting 2002-era highs, has forced a repricing of interest rate risk across global markets. The result is a severe rotation out of growth and cyclical assets, with nine of eleven S&P sectors closing in the red as defensive plays dominate.