Rising Treasury Yields Cause Stocks & Bonds to Trade Lower
2024-05-12
The S&P 500 traded lower for the first time in six months.
The magnitude of the sell-off was relatively small at -4.0%, but it ended the S&P 500’s 5-month rally.
A rapid rise in Treasury yields contributed to the move lower in equities, with the 10-year yield rising +0.48% to end April at 4.68%.
The Russell 2000 Index, which is more sensitive to interest rate movements, traded lower by -6.8% as rising interest rates weighed on smaller companies.
In the credit market, bond prices declined as Treasury yields rose.
As discussed below, the prospect of a first-half 2024 interest