Major U.S. stock indices have opened lower as anticipated, but prices are rebounding from their lows, prompting speculation that the sharp drop in yields today might be slowing down the decline in stock prices. The 2-year yield, which traded as low as 3.72%, is now back up to 3.881%, still down 34 basis points for the day. The 10-year yield stands at 3.462%, down 17 basis points, after reaching a low of 3.425%. On Monday, the 10-year yield hit a low of 3.418% before bouncing back. Today's high yield for the 10-year was 3.710%.
A snapshot of the U.S. stock market, 11 minutes into the trading session, shows:
- Dow Jones Industrial Average down 445.84 points or 1.37% at 31,709.57
- S&P 500 Index down 52 points or 1.33% at 3,867.30
- NASDAQ Index down 117.69 points or 1.03% at 11,310.45
- Russell 2000 down 40.86 points or 2.3% at 1,736.03
Examining the hourly chart of the NASDAQ index, yesterday's high stalled just below the falling 100-hour moving average and the 38.2% retracement of the decline from the February high to the March low. Those levels were near 11,474.34, while the index reached 11,467.02 yesterday.