Yesterday, U.S. benchmarks experienced their worst day since March, allowing some air to come out of the balloon. The USDA’s WASDE report comes out today.Risk-assets are keying off a reality that has been clouded by trillions upon trillions of added liquidity. The Federal Reserve’s balance sheet has now surpassed $7 trillion. Despite the Nasdaq-100 achieving a fresh record and the S&P 500 gaining nearly 50% over this time, we foresee the Fed holding ground as the aftermath of Covid-19 plays out.Something is wrong when the buying is so blind that even the bankrupt companies nearly triple in a single session. On Friday, the BLS reported 2.5 million jobs were added in May, Yes added. NFP surprised the market with job gains and unemployment falling to 13.3%.The S&P 500 and Nasdaq-100 gained ground for the 7th consecutive session yesterday. The Nasdaq-100 is 1 – 1.5% from a new record high. According to the Financial Times, Amazon sold $10 billion worth of 3-year debt at 40-basis points yesterday. A Federal Reserve balance sheet surpassing $7 trillion, essentially doubling since August, has completely disconnected stocks broadly from the economic carnage of the Covid-19 pandemic and now every major U.S. city in complete disarray.