The post The market that refused to blink and dispersion is the signal appeared on BitcoinEthereumNews.com.

Dispersion is the signal This was supposed to be a week of verdicts. Jobs. Tariffs. Rates. Instead, markets got ambiguity and treated it like oxygen. December payrolls undershot expectations but remained well within the market-perceived bullish-for-equities tolerance. 50,000 jobs added and unemployment down to 4.4% kept the data squarely in the Fed no-action zone. Too soft to spook inflation, too firm to pull forward easing. Hiring slowed, firing slowed more, and demand held. The market processed it in seconds and kept rotating. The tariff story followed the same script. The Supreme Court’s failure to deliver a ruling was not read as indecision but as intent. Markets tend to interpret time as a source of nuance. A rushed decision would have led to a blunt outcome and a higher probability that tariffs would be struck down outright. Delay suggested a more layered judgment and, more importantly, a longer runway before policy risk hardens into policy reality. From an equity risk-taking perspective, that pause mattered far more than the verdict itself. With the can kicked down the road, uncertainty was temporarily discounted rather than resolved, and risk capital stayed in motion. So equities rallied anyway. Not in a straight line, and not where last year’s leadership lived. Mega-cap tech lagged. Secular growth stalled. The market did not abandon risk; it simply changed its uniform amid the great January market rotation. Small caps surged more than 5% on the week, powered by an aggressive short squeeze that marked one of the strongest starts to a year in over 10 years. Cyclicals tied to nominal strength quietly took the baton. Dispersion widened. This was not a beta chase. It was a rotation with intent. Bonds were quieter but no less informative. The long end outperformed, flattening the curve even as enthusiasm for near-term rate cuts cooled. 2-year yields nudged higher, reinforcing the idea that January…

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Filed under: News - @ January 11, 2026 11:57 pm