Fed Will Prop Up Assets Until Next Week: 3-Minute MLIV

Inflation & Monetary Policy - The market is anticipating the release of PII data as a potential directional signal for the more significant CPI data, which will influence expectations for the Federal Reserve's upcoming meeting [2][3] - The market believes the Federal Reserve's upcoming meeting will likely be dovish, providing support for both stocks and bonds [5][8] - The market expects any inflation-related news to only cause a short-term shock, with focus quickly returning to the Federal Reserve's dovish stance [5] Geopolitical Risk - The market is currently dismissing news of a Russian drone incursion into Poland, with minimal impact on market sentiment [6][7] - Despite negative geopolitical news from Europe, the overall backdrop remains supportive for stocks due to positive earnings and expectations of a dovish Federal Reserve [8] Stock Market & Administration Influence - The market believes the influence of the US administration on the stock market is less immediate than commonly perceived, requiring a significant drawdown before intervention [10][11]