- Nasdaq 100, Russell 2000 rally amid sharp Treasury yield declines
- Strong correlations with bond futures signal rates-driven moves, not political
- Key technical breakouts suggest upside risks remain in focus.
- Worst case scenario on tariffs may be avoided, bolstering risk appetite
Summary
This analysis explores how falling US Treasury yields, not political developments, may have driven last week’s US stock market rally. It highlights key technical levels and correlations in 10-year Treasury note, Nasdaq 100, and Russell 2000 futures, offering insights into near-term risks and trading setups.
Big rates reversal powers stock gains
It should come as no surprise that US stocks had their strongest performance since the Presidential election last week. But was it really to do with Donald Trump’s looming return to the Oval Office? That was priced in long ago, you’d think. Instead, it coincided with a sizeable decline…
