Dow Jones, S&P 500, Nasdaq continue the week's see-saw action
Posted On March 24, 2022
The stock market continues its give-and-take pattern Thursday, with equities moving higher after a decline in the previous session.
The Nasdaq (COMP.IND) +0.4%, S&P (SP500) +0.4% and Dow (DJI) +0.2% are moving up.
“While the rally overthe last 7 sessions has felt remarkable (and it was in certain areas – NDX), the SPX itself put in almost an identical rally in magnitude and duration to that of Jan. 24th to Feb. 2nd (~8.8% over 8 days),” BTIG’s Jonathan Krinsky wrote.
The S&P “is actually still below the late January early February highs around 4600,” he added.
The yield curve is steepening a little bit, with rates still racing higher.
The 10-year Treasury yield is up 6 basis points to 2.38%. The 2-year is up 3 basis points to 2.14%.
“The Fed doesn’t want to talk, yet, about the prospect of a significant increase in the level of neutral rates,” Pantheon Macro’s Ian Shepherdson said. “But the Treasury market is starting to behave as though it has an inkling that the ‘new normal’ idea of long yields around 2% forever is an idea whose expiration date has passed.”
“The curve has flattened substantially since the December FOMC meeting, when the FOMC signaled three hikes this year, and last week’s new dotplot showing seven hikes, with the 2s-10s spread dropping from a steady 80bp to just 22bp. More recently, though, rates have risen sharply across the whole curve,” he added.