Markets Drop as Strong Economic Data Damps Hopes for Near-Term Fed Rate Cuts

• Extreme volatility in markets snapped steady gains as hot economic data raised doubts about near-term Fed rate cuts

• Robust jobs and manufacturing reports sparked bond repricing; oil price surge above $90/barrel rekindled inflation fears

• Shift in investor behavior as stocks erased intraday rally, VIX spiked; hedge funds increased bearish bets

• Fed policymakers signaling no rush to cut rates amid worries of re-accelerating inflation

• "Good news is bad news" backdrop pushing back expectations of rate cuts to September vs June/July previously