What Ten-Year Yield Pulling Back Means For The Market

Posted: Apr 01, 2021 1:40 PM
What Ten-Year Yield Pulling Back Means For The Market

Source: AP Photo/Richard Drew, File

The ten-year yield is pulling back today, but it is still in its three-month trading channel that has caused so many problems for technology stocks.  

That pullback is helping Technology, which is the top performing sector in today’s session.  But I think there is more to this rebound than the correlation with bond yields.  Focus on the potential and look over a longer-term horizon to justify certain valuation metrics.

S&P 500 Index



Communication Services XLC



Consumer Discretionary XLY



Consumer Staples XLP



Energy XLE



Financials XLF



Health Care XLV



Industrials XLI



Materials XLB



Real Estate XLRE



Technology XLK



Utilities XLU




With the market looking at a three-day weekend, it’s intriguing this rally has held today.  Lots of folks are looking for one million net new jobs in tomorrow’s report.  That would be something, but I think it comes in below, which is what we need to keep inflation concerns under wraps. 

Things are going to be great, and it will feel like a party for a while…but only for a while before there is a more normal pace of growth.   I’m more than cool with that if the private sector is allowed to carry the heavy load. 

There will be no reports tomorrow. Have a great holiday weekend.  Be safe and stay well.