Stocks & Gold Jump, Bonds Dumped As Bitcoin Bounces Bigly Off Bear-Market Lows

ADP Employment data (combined with a number of other private jobs data) signaled a rebound in the labor market and ISM data showed resilience in the Services sector (with mentions of tariff headwinds down sharply from prior months, suggesting perhaps that executives have digested most of the impact from new import tariffs already even if Prices Paid were at 2 year highs) prompted some relief buying in stocks after yesterday's battering as perhaps these are signs of the new normal's (slower but still growing) status in Trump 2.0 era.

In addition to better data, the plumbing pains seem to have somewhat eased. As Bloomberg's Michael Balls notes: 

Elevated SOFR versus IORB spreads, Treasury General Account and quantitative tightening dynamics and Standing Repo Facility usage indicate cash scarcity and tighter financial conditions out of the front-end, weighing on risk appetite. The nuance this week is that the pressure isn’t worsening as month-end frictions wash out. It’s a headwind, not a hurricane, and that difference is crucial for risk assets trying to stabilize.