S&P 500 found itself under pressure at the start of the trading session, but traders quickly bought the dip. Treasury yields moved to new lows, providing material support to stocks. The pullback of the U.S. dollar, which tested multi-month lows, has also served as a positive catalyst for S&P 500.
Traders bet that the Fed will not push rates above the 5.00% level in 2023 as its previous moves have already put material pressure on inflation.
Today’s move was led by energy stocks, which enjoyed strong support as WTI oil moved above the $78 level. Hess Corporation, APA Corporation, and EQT Corporation were the among the biggest gainers in the S&P 500.
The tech-heavy NASDAQ also moved higher as lower Treasury yields are bullish for yield-sensitive tech stocks.
Currently, NASDAQ is trying to climb above the 11,500 level. In case this attempt is successful, NASDAQ will continue its rebound and move towards the resistance at 11,600.
Dow Jones (US30)
Tomorrow, the earnings season begins with reports from big banks, including Dow Jones component JPMorgan Chase. Traders should be prepared for fast moves.
For a look at all of today’s economic events, check out our economic calendar.