Market Multiple Levels: S&P 500 Chart
What’s in Today’s Report:
- Market Multiple Levels: S&P 500 Chart
- Was Yesterday the End of Tech Underperformance?
Stock futures are little changed after a mostly quiet night of news as investors look ahead to a key U.S. inflation report and another benchmark Treasury Note Auction.
Economically, Chinese inflation data came in slightly ahead of estimates overnight while French Industrial Production handily topped expectations (3.3% vs. E: 0.5%) however neither release is having a significant impact on markets.
Looking into today’s session market focus will be on inflation data early with the CPI report (E: 0.4%) due out ahead of the opening bell. A “hot” report could spark a move higher in yields which would likely weigh on tech shares and markets broadly. 1.60% is a key level to watch in the 10 year yield as selling pressure on equities has risen significantly in recent sessions when the benchmark yield approaches that mark.
From there, focus will turn to this afternoon’s 10-Yr Treasury Note Auction at (1:00 p.m. ET) as another poor auction for mid-duration Treasuries could also influence a sharp move higher in rates that again would weigh on equity markets, specifically tech.
Bottom line, where stocks go today will largely depend on the price action in the bond markets. If bonds remain orderly, the rebound in equities can continue, however if yields retest recent highs, expect another wave of volatility, especially in high-multiple sectors like tech.
