Yields Up Again, Nasdaq Above 15k
29 March 2022
It looks like the rally in stocks could continue, despite soaring US yields as EU and US equity benchmarks are trading stronger today.
The Nasdaq 100 index has managed to jump above the psychological level of 15,000 USD, confirming the ongoing bullish momentum as bulls ignore the Fed's coming hawkishness in tightening monetary policy.
US yields are advancing again today, with the 2-year yield rising to 2.435% during the London session. At this rate, the 2-year yield could be higher than the 10-year yield very soon, meaning the yield curve will get inverted. That is usually a recession indicator.
Later in the day, the Conference Board's Consumer Confidence Index and January Housing Price Index will be featured in the US economic calendar.
Additionally, Federal Reserve Bank of New York President John Williams will speak at a webinar hosted by the Federal Reserve Bank of New York, likely confirming the Fed is ready to deliver a 50 bps rate increase at its next meeting.
Elsewhere, gold and silver seem to be struggling (likely due to the rising real yields). If gold falls back below the 1,900 USD, we might see a drop toward November highs at 1,870 USD. At the same time, oil is trying to erase yesterday's losses, jumping above 106 USD during the EU session.
Meanwhile, the Financial Times reported that Russia was no longer going to demand Ukraine be "denazified" in the upcoming negotiations.