S&P 500 ends flat despite cyclical strength; yields reverse sharply
Today's markets illustrated two problems with the relation trade: its precariousness and its relatively small impact on the major averages.
Cyclicals led the day, but the S&P (SP500) couldn't gain much ground, closing flat. The Nasdaq (COMP) +0.3% fared better, with the Big 6 megacaps mixed.
Tesla rebounded from its worst day in more than three months.
The Dow (DJI) +0.2% was higher and the Russell 2000 (RTY) +1.6% rallied sharply again.
The 10-year Treasury yield hit a post-pandemic-decline high at 1.18% earlier in the day, but sharply reversed course down to 1.13% after some Fed speakers made some bond-friendly remarks. James Bullard said it was too soon to talk about tapering, while Loretta Mester said policy change wasn't needed if the economy unfolds as expected.
Energy (NYSEARCA:XLE) was the big winner again, snagging the top five biggest S&P gainers. But its small weighting couldn't budge the index.
WTI futures +1.8% bounced above $53/barrel.
Communications Services (NYSEARCA:XLC) was the worst performing sector, with social media weak again. Facebook fell, despite a Cowen price hike on ad spend outlook. Twitter was down as the political problems facing the site continue. It suspended a bunch of QAnon accounts.
Risk warning, disclaimer: the above is a personal market judgment based on published information and historical chart data on Tradingview, all analysis is only subjective. Hope investors consider, I am not responsible for your investment decision. Thank you.
Good luck!
Today's markets illustrated two problems with the relation trade: its precariousness and its relatively small impact on the major averages.
Cyclicals led the day, but the S&P (SP500) couldn't gain much ground, closing flat. The Nasdaq (COMP) +0.3% fared better, with the Big 6 megacaps mixed.
Tesla rebounded from its worst day in more than three months.
The Dow (DJI) +0.2% was higher and the Russell 2000 (RTY) +1.6% rallied sharply again.
The 10-year Treasury yield hit a post-pandemic-decline high at 1.18% earlier in the day, but sharply reversed course down to 1.13% after some Fed speakers made some bond-friendly remarks. James Bullard said it was too soon to talk about tapering, while Loretta Mester said policy change wasn't needed if the economy unfolds as expected.
Energy (NYSEARCA:XLE) was the big winner again, snagging the top five biggest S&P gainers. But its small weighting couldn't budge the index.
WTI futures +1.8% bounced above $53/barrel.
Communications Services (NYSEARCA:XLC) was the worst performing sector, with social media weak again. Facebook fell, despite a Cowen price hike on ad spend outlook. Twitter was down as the political problems facing the site continue. It suspended a bunch of QAnon accounts.
Risk warning, disclaimer: the above is a personal market judgment based on published information and historical chart data on Tradingview, all analysis is only subjective. Hope investors consider, I am not responsible for your investment decision. Thank you.
Good luck!
