Stocks Slump After Positive PMIs As Biden Admin Signals No Compromise On Stimulus

US equity markets are suddenly dropping after a reported statement from the Biden administration suggests both a lack of involvement in strategy by the Biden admin and no sign of any compromise from the left on any short-term stimulus hopes.

Politico’s Jake Sherman reports that Biden spokesman Andrew Bates reports that the Biden admin does not support paring back Democratic demands in Covid relief talks.

“This is incorrect. The President-elect fully supports the Speaker and Leader in their negotiations.”

The result is a sudden tumble in stocks, led by growth-heavy Nasdaq, erasing all overnight gains, as this suggests there will be no short-term stimulus deal… and this morning’s better-than-expected PMIs do not suggest ‘crisis’ bailout needs for Americans (despite the daily headlines)…

The dollar is spiking, less deficit-spending?

And as the USD spiked, gold was clubbed like a baby seal…

Of course, after Georgia in January, all bets are off…