US stock indices opened higher but slipped into negative territory as Treasury yields climbed. The S&P 500, Nasdaq Composite, and Nasdaq 100 each held the same support levels they defended a day earlier, leaving traders watching whether buyers can repeat that defense.
Major US indices opened higher, then gave back their gains as the 10-year Treasury yield rose 5 basis points to 5.212%, renewing pressure on stocks. Higher yields typically weigh on equity valuations, and the move reversed the morning's advance.
Economic data added to the mixed picture. Headline durable goods orders were virtually unchanged in August, while orders excluding transportation rose 0.3%, pointing to some underlying strength beneath the flat headline. The University of Michigan sentiment reading also came in above estimates. Yet one-year inflation expectations climbed to 4.6%, up from 4.0% the prior month, a combination that keeps yields elevated even as growth signals hold up.
The S&P 500, the Nasdaq Composite, and the Nasdaq 100 each tested a key support level a day earlier. Buyers stepped in near those levels each time, lifting the indices off their lows and leaving them close to unchanged by the close. That response held, but the same support levels remain in play today as yields push higher again.
The question now is whether buyers defend those levels a second time. Hold above support, and yesterday's rebound has room to extend. Break below and stay there, and sellers take back control of the near-term trend.
Source: investingLive
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