S&P 500 (SPY) Declines As Treasury Yields Test New Highs

Tech stock prices are still quite volatile. As oil markets retreat, energy equities are falling.

Stocks Are Under Pressure As Yields Rise

The S&P 500 is down today as tech companies continue to under intense pressure due to increasing Treasury rates.

While the yield on 2-year Treasuries neared the 3.50% mark, the yield on 10-year Treasuries increased to multi-month highs at 3.35%. The yield curve's inversion suggests that investors in bonds are concerned about a possible recession.

It should be highlighted that European government bond markets are seeing significant movement.

Trading fears that the energy crisis will result in further money printing, which is why UK bonds are touching new lows. Germany's bonds are also under a lot of pressure, and it seems that the ECB may be selling them to support the bonds of other members that are less strong, like Italy or Greece.

While the rates on European bonds do not directly affect American markets, a possible debt crisis in the EU and UK might have a substantial negative influence on the S&P 500. In light of this, traders should keep an eye on these bond markets' movements in the following weeks.

Technically speaking, the S&P 500 keeps trying to settle below the 3915 mark. A successful challenge of this level will indicate that the S&P 500 is prepared to pick up speed on the downside.

Tech Shares Remain Weak

The market as a whole keeps falling due to tech stocks. Other top tech companies like Apple, Microsoft, Alphabet, Amazon, and others continue to under criticism.

Today's decline in WTI oil prices has also affected energy equities like Exxon and Chevron.

The safe-haven market has the highest concentration of stock demand. Today, there is some support for stocks including Johnson & Johnson, UnitedHealth Group, and Eli Lilly.

From a broad perspective, it is clear that the S&P 500 will be unable to pick up speed without a significant recovery in the tech stock sector.