Biden didn't seem to calm things down at all in the MidEast as he stumbled through his address, and the China chip crackdown is becoming an issue.

Property was on Americans' minds too as mortgage rates hit 8% (23 year highs), with housing data ugly (starts and rental-unit permits plunged) after homebuilder sentiment slumped.

FedSpeak was all aligned ahead of tomorrow's speech by Powell. Waller will 'watch and see' if more rate-hikes needed; Williams says rates need to be more restrictive 'for some time'. The Beige Book was 'meh'.

Morgan Stanley (worst day since June 2020) upset the 'banks are awesome' narrative as credit loss reserves rose more than expected (and NIM did not rise as much as expected).

So with all that said, what did the market do?

Banks were not pretty...