Stock Rally Hits a Wall as Treasury Yields Spike – US Market Wrap

Treasury yields skyrocketed and the dollar reached a two-year high ahead of important inflation data, ending a rally that had propelled stocks to a string of all-time highs.

Following the largest five-day run in a year for the S&P 500, stocks slightly declined. Banks and small caps lost ground after significant post-election gains. Following a nearly 45% increase, Tesla fell. Bitcoin splintered. It was the highest dollar since November 2022. With data anticipated to demonstrate the uneven path of easing price pressures in the domestic stretch towards the Federal Reserve’s target, Treasury yields increased.

The S&P 500 experienced a 0.3% decline. The Nasdaq 100 experienced a 0.2% decline. The Dow Jones Industrial Average experienced a 0.9% decline. The Russell 2000 experienced a 1.8% decline.

The yield on the 10-year Treasury note increased 12 basis points to 4.43%. The Dollar experienced a 0.4% increase.