In Tuesday's trading session, the
SPX
experienced a decline as the 10-year Treasury yield climbed to 4.06% following comments from Federal Reserve Governor Waller. While most sectors within the S&P 500 recorded losses, the technology sector remained resilient.
The rise in the 10-year Treasury yield to 4.06% exerted downward pressure on the S&P 500, resulting in a 0.4% decline to 4,766. With the exception of the technology sector, which held its ground, 10 out of the 11 sectors experienced losses. This retreat reflects the market's reaction to the increase in Treasury yields.
Federal Reserve Governor Waller's comments regarding potential rate cuts in the current year drew attention from market participants. While reaffirming the possibility of rate cuts, Waller emphasized the importance of a methodical and cautious approach. He highlighted the need to carefully consider the sustainability of key economic indicators such as low inflation, strong growth, and low unemployment before implementing any rate cuts. Waller did not specifically comment on the possibility of a rate cut in March, but rather emphasized a data-dependent approach.
Technical wise, S&P 500 failed to break the 4,800 level forming a double top chart pattern. If the price breaks the 4,680 level (neckline of the double top), we might potentially see the price going down to 4,500 area.
SPX
experienced a decline as the 10-year Treasury yield climbed to 4.06% following comments from Federal Reserve Governor Waller. While most sectors within the S&P 500 recorded losses, the technology sector remained resilient. The rise in the 10-year Treasury yield to 4.06% exerted downward pressure on the S&P 500, resulting in a 0.4% decline to 4,766. With the exception of the technology sector, which held its ground, 10 out of the 11 sectors experienced losses. This retreat reflects the market's reaction to the increase in Treasury yields.
Federal Reserve Governor Waller's comments regarding potential rate cuts in the current year drew attention from market participants. While reaffirming the possibility of rate cuts, Waller emphasized the importance of a methodical and cautious approach. He highlighted the need to carefully consider the sustainability of key economic indicators such as low inflation, strong growth, and low unemployment before implementing any rate cuts. Waller did not specifically comment on the possibility of a rate cut in March, but rather emphasized a data-dependent approach.
Technical wise, S&P 500 failed to break the 4,800 level forming a double top chart pattern. If the price breaks the 4,680 level (neckline of the double top), we might potentially see the price going down to 4,500 area.