Futures Jump After Biden's Disastrous Debate, Core PCE Looms

"Futures are higher led by small caps with tech stocks also mostly higher, as markets start pricing in a Trump presidency following what even Bloomberg admitted was a "disastrous" debate performance by Biden which is making Democrats panic. As of 7:45am ET, S&P and Nasdaq 100 futures rose 0.4%, suggesting this week’s rally on Wall Street is set to continue,

with both indexes on course for a third quarter of gains amid expectations that signs of more bad economic growth will give the Fed more room to ease policy this year. That said, not even a looming core PCE which will likely show continued easing in prices (May PCE est 0.0% MoM, down from 0.3%, 2.6% YoY, down from 2.7%) is having an impact on bond yields which are notably higher this morning. The elephant in the room, of course, was last night catastrophic debate by Joe Biden who ended his presidential campaign in less than 2 hours because as Bloomberg notes, "Biden failed to ameliorate concern about his age in the presidential debate, offering remarks in a hoarse voice and often misspeaking and meandering. A thousand-yard stare on the split screen didn’t help. Donald Trump won the debate, according to 67% of watchers polled by a CNN flash poll. Democrats expressed alarm about Biden’s candidacy, but the president told reporters he intends to stay on the ticket." ZH