Trump-led risk-off: S&P 500 futures drop, safe havens rally

Trump is in lead in Florida, a state which has voted for winning candidate in all but one election since 1964.

The total tally is 130 to 97 in favor of Trump. No wonder the markets have turned risk averse.

At the time of writing, the S&P 500 futures were down 1.5% or 32 points at 2100.75 levels. Meanwhile, the 10-yr treasury yield was down 8 basis points, while the 2-yr treasury yield was down 7 basis points.

Fed rate hike bets take a hit

Note that the odds of the next Fed rate hike are at the mercy of the financial markets, which at the moment are not appreciating the Trump lead. Moreover, the drop in the 2-yr yield represents falling short-term rate hike expectations.