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
Health Care XLV
Real Estate XLRE
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.