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CPI and PPI data resulted in some volatility this week for Equities, but largely have locked in the outcome of next week's Fed meeting with a 25 bp cut, if the rate cut bets of the Swap market positioning is any guide. Whether or not we see a subsequent 50 bp the following meeting and Rate cuts follow the markets 200 bp into next June is open to argument, but for now, economic data has stabilized somewhat in the last month, and Treasury yields seem to be taking their cue more from labor mkt data than inflation. Equities are mildly higher today, thanks to 6 positive sectors out of 11 and breadth is around 2/1 positive. Yet, its the slightly negative move out of Technology (A-1.04% , MU-4.45%  LRCX-3.37% , STX-2.28%  big laggards) and Healthcare weakness (MRNA4.80% , WAT-1.57% , TMO-0.98% , PFE1.47% ) thats causing benchmark indices not to be higher.

Crypto has demonstrated resilient price performance in response to today's CPI print, but STX-2.28%  has stood out as a clear outperformer. The market is clearly paying attention to Stacks and its impending upgrade.

STX-2.28%  has rallied nearly 70% since its inclusion in our Core Strategy on 11/30. While the more tactically minded might be compelled to trim their positions here, we think this is a buy and hold. The chart below speaks to room that the BTC L2 still has to run.