S&P 500 (SPY) Declines As Treasury Yields Rise

REITs Continue to Face Serious Pressure

After making a failed effort to stabilize above the 20 EMA close to the 3800 level, the S&P 500 is now declining.

The Initial Jobless Claims data, which revealed that 219,000 Americans applied for unemployment benefits in a week as opposed to the analyst estimate of 203,000, was the main focus of trading today.

The Non Farm Payrolls data, which traders will review tomorrow, is anticipated to reveal that the economy gained 250,000 jobs in September. The dynamics of the S&P 500 will probably be significantly impacted by this news.

Treasury rates increased concurrently, which was negative for equities. Ten-year Treasury yields are now attempting to stabilize above the 3.80% mark. It will climb near the recent highs of 4.00% if this effort is successful, which would put more pressure on the stock market.

As WTI oil challenged the significant resistance level at the 50 EMA at $88.40, energy companies including Marathon Oil, Occidental Petroleum, and Halliburton kept climbing higher today.

REITs were still under significant pressure at the time. Traders sell anything associated with the REIT sector in response to increasing Treasury rates. Crown Castle, American Tower Corporation, and Digital Realty Trust are testing new lows.

The S&P 500 is down by roughly 0.5% today, but the retreat is significant since energy companies are the only sector that are up. This is hardly unexpected given that Treasury yields immediately recovered after the most recent fall, showing that market participants are still concerned about the Fed raising interest rates aggressively.