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.
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