Tuesday's Market Recap - Stocks Unable To Avoid The Grip Of The US 10 Year Yield.
- Mar 2, 2021
- 2 min read
What is The Premarket Telling Us?
7:30 AM.
Stock futures are modestly higher at this time, with Dow futures down 74 points, Nasdaq futures down 47 points, and S&P futures down 14 points. Asian market ended lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.45%, down 0.01%.
Currency Desk:
Eurodollar: 1.20
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $60.81/barrel, up 0.28%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended Japan (Nikkei 225) down 0.86%, Shanghai down 1.21%, Hong Kong (Hang Seng) down 1.21%.
Major European markets were slightly higher.German (DAX) up 0.19%, France CAC 40 up 0.29%, London FTSE 100 up 0.38%.
Market And Sector Dynamics
Stocks opened the trading session modestly positive, with the Dow up 41 points, Nasdaq up 10 points, and S&P up 3 points. WTI crude oil opened slightly higher at
$60.94/barrel, up 0.48%, while the US 10 Year Yield sits at 1.434%. Clearly, markets are now tethered to US bond yields. When the 10 Year Bond Yield falls, the market, particularly big technology growth stocks soar, on the contrary when the bond yield rises, the big growth stocks pull back aggressively.
Markets turned lower an hour after the open, with stocks down around more than 200 points, shortly before noon. Markets rebounded a short while later, but still in negative territory, holding at that level for most of the afternoon session, before selling off into the close.
Ten of the eleven S&P sectors ended the day with losses, led by Technology, Consumer Discretionary,
Real Estate, Communication Services, Energy, Financials, Utilities, Industrials, Healthcare, and Consumer Staples. Basic Materials ended the session with gains.
Factors Influencing Today's Market
Markets continue to be whipsawed by the US 10 Year Bond Yield.
The US 10 Year Bond closed the session at 1.398%. down 1.92%.
Asian stocks ended the day lower, while European stocks were higher.
WTI crude oil closed today $59.75/barrel, down 1.47%.
Market Close Volume Traded And Advance Decline Ratio
Stocks ended the session in negative territory, on growing inflation fear by investors. The Dow lost 143.99 points, Nasdaq sank 230.04 points, and the S&P fell 31.53 points. Total NYSE volume traded, a moderate 5.55 billion shares. Declining shares outpaced Advancing shares by 1.34:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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