Asset Watch
Tuesday, December 6, 2022
So, while conflicting opinions reign, could the S&P 500’s short-term fate come down to the performance of the U.S. 10-year Treasury yield?
The blue line shows how the S&P 500 closed above its 200-day moving average on Dec. 2, meaning the index’s technical strength remains. But the black line shows how the inverted (down means up) U.S. 10-Year Treasury yield has largely decided the S&P 500’s direction in 2022. In a nutshell: when interest rates decline, the S&P 500 rises.
Therefore, with the black line rising as interest rates fall, the S&P 500 has continued its positive response. Will the good times last, or is another rate rise on the horizon?