What Ten-Year Yield Pulling Back Means For The Market

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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

+0.85%

 

Communication Services XLC

+1.32%

 

Consumer Discretionary XLY

+0.70%

 

Consumer Staples XLP

 

-0.41%

Energy XLE

+0.50%

 

Financials XLF

+0.73%

 

Health Care XLV

+0.11%

 

Industrials XLI

 

-0.11%

Materials XLB

+0.11%

 

Real Estate XLRE

+0.24%

 

Technology XLK

+1.60%

 

Utilities XLU

 

-0.12%

 

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.