Key Insight

Financial markets are pricing in a dramatically stronger recovery than the real economy is delivering, creating an unusually wide credibility gap between asset prices and fundamentals.

Generated by Claude on Apr 15, 2026

Financial Conditions

Performance of key market indicators across money, credit, growth, and inflation.

Updated today.

Exclude COVID

Money

US Dollar Index (DXY)

A stronger dollar tightens financial conditions globally.

▲ +0.1% YoY

97.78Index

Trend YoY growth is +0.1%, slowing by 2 bps/year over the last 9Y. Deviations have remained below trend for 281 consecutive periods. Latest: -1.8%, 2.0 pp below trend, a 0.63σ deviation. The latest YoY reading is boosted by 6.0 pp due to an easy comparison base from May '25.

Level

YoY %

y = 0.4% 2 bps/yr · t

Deviation from trend

Credit

High Yield Credit Spreads

Measures financial stress by comparing risky corporate debt to government bonds.

▲ +0.2% YoY

2.8%

Trend YoY growth is +0.2%, accelerating by 58.8 pp/year over the last 2Y. Deviations have remained below trend for 31 consecutive periods. Latest: -0.9%, 1.1 pp below trend, a 1.6σ deviation. The latest YoY reading is depressed by 99 bps due to an tough comparison base from May '25.

Level

YoY Change (bps)

y = −1.0% + 59 bps/yr · t

Deviation from trend

Bank Stocks (KBE)

Banks transmit credit into the economy; weakness signals tightening lending conditions.

▲ +14.5% YoY

$64.7

Trend YoY growth is +14.5%, accelerating by 69 bps/year over the last 9Y. Deviations have remained above trend for 26 consecutive periods. Latest: +27.9%, 13.3 pp above trend, a 1.3σ deviation.

Level

YoY %

y = 8.3% + 69 bps/yr · t

Deviation from trend

Regional Banks (KRE)

Regional banks are highly sensitive to deposit stress and commercial lending.

▲ +10.7% YoY

$69.9

Trend YoY growth is +10.7%, accelerating by 11 bps/year over the last 9Y. Deviations have remained above trend for 46 consecutive periods. Latest: +29.3%, 18.5 pp above trend, a 1.6σ deviation. The latest YoY reading is depressed by 4.6 pp due to an tough comparison base from May '25.

Level

YoY %

y = 9.7% + 11 bps/yr · t

Deviation from trend

Growth

US Recession by EOY (Polymarket)

Prediction market probability of a US recession by end of 2026.

▼ 27.7%

23.5%

Level

YoY Change (bps)

No data
Semiconductor Index (SOX)

Semiconductors sit upstream of electronics, autos, and AI infrastructure.

▲ +30.1% YoY

11.0kIndex

Trend YoY growth is +30.1%, accelerating by 11 bps/year over the last 9Y. Deviations have remained above trend for 111 consecutive periods. Latest: +154.7%, 124.6 pp above trend, a 3.0σ deviation. The latest YoY reading is boosted by 39.6 pp due to an easy comparison base from May '25.

Level

YoY %

y = 29.0% + 11 bps/yr · t

Deviation from trend

Copper

Industrial metal demand tracks construction and manufacturing activity.

▲ +11.6% YoY

$6.2

Trend YoY growth is +11.6%, accelerating by 5 bps/year over the last 9Y. Deviations have remained above trend for 25 consecutive periods. Latest: +34.0%, 22.4 pp above trend, a 2.5σ deviation. The latest YoY reading is boosted by 9.2 pp due to an easy comparison base from May '25.

Level

YoY %

y = 11.2% + 5 bps/yr · t

Deviation from trend

Inflation

Gold

Traditional inflation hedge and safe-haven asset; rises when real rates fall or uncertainty spikes.

▲ +35.0% YoY

$4.7k

Trend YoY growth is +35.0%, accelerating by 4.4 pp/year over the last 9Y. Latest: +38.9%, 3.9 pp above trend, a 0.27σ deviation. The latest YoY reading is depressed by 16.8 pp due to an tough comparison base from May '25.

Level

YoY %

y = −4.6% + 4.4 pp/yr · t

Deviation from trend

Commodities (PDBC)

Broad commodity basket spanning energy, metals, and agriculture — a direct inflation input.

▲ +11.4% YoY

$18.0

Trend YoY growth is +11.4%, accelerating by 64 bps/year over the last 9Y. Deviations have remained above trend for 52 consecutive periods. Latest: +49.9%, 38.5 pp above trend, a 2.4σ deviation. The latest YoY reading is boosted by 17.1 pp due to an easy comparison base from May '25.

Level

YoY %

y = 5.6% + 64 bps/yr · t

Deviation from trend

Oil (WTI)

Energy prices propagate through inflation and geopolitics.

▲ 1.0x YoY

$99.9

Trend YoY growth is 1.0x, slowing by 41 bps/year over the last 25Y. Deviations have remained above trend for 39 consecutive periods. Latest: 1.6x, 53.2 pp above trend, a 1.7σ deviation. The latest YoY reading is boosted by 29.9 pp due to an easy comparison base from Apr '25.

Level

YoY %

y = 15.0% 41 bps/yr · t

Deviation from trend

Equities

S&P 500

The benchmark US equity index — a forward-looking gauge of corporate earnings, growth expectations, and risk appetite.

▲ +16.1% YoY

7.3kIndex

Trend YoY growth is +16.1%, accelerating by 54 bps/year over the last 9Y. Deviations have remained above trend for 23 consecutive periods. Latest: +29.5%, 13.3 pp above trend, a 1.8σ deviation. The latest YoY reading is boosted by 6.5 pp due to an easy comparison base from May '25.

Level

YoY %

y = 11.3% + 54 bps/yr · t

Deviation from trend

S&P 500 E-mini Futures

Round-the-clock futures price for the S&P 500 — leads cash equities outside of regular trading hours.

▲ +16.2% YoY

7.3kIndex

Trend YoY growth is +16.2%, accelerating by 54 bps/year over the last 9Y. Deviations have remained above trend for 24 consecutive periods. Latest: +29.3%, 13.1 pp above trend, a 1.7σ deviation. The latest YoY reading is boosted by 7.8 pp due to an easy comparison base from May '25.

Level

YoY %

y = 11.4% + 54 bps/yr · t

Deviation from trend