Apple laid an egg and Manufacturing data showed a sharp drop. As a result, 2 year bonds are now about 12 basis points BELOW the fed fund rate which hasn't happened since early 2008. The 10 Year bond is closing in on 2.5%. The message is now loud and clear - the fed needs to cuts rates and do it NOW. The bond market is signaling that there will be a very swift drop in economic activity which is going to catch everyone off guard. Don't expect the jobs report tomorrow to reflect this as jobs are a lagging indicator.
Powell is now caught in a rear naked choke by Mr. Market. He tried to show everyone how tough he was, that he wouldn't be pushed around and now he's fucked. He will be forced tap out soon. I guarantee you this guy is not sleeping well.
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