S&P 500 (SPY) Rallies As Dollar Pulls Back From Highs

Stocks Rise Following a Drop

As traders raced to purchase oversold equities, the S&P 500 acquired significant upward momentum and surged near the 3700 mark.

The U.S. Dollar Index reached highs close to 114.50 before losing steam and falling down into the 113 level, giving stocks important support.

Additionally, Treasury yields have decreased. Ten-year Treasury yields decreased from 4.00% to 3.75%, while 2-year Treasury yields changed from 4.30% to 4.15%. Lower Treasury rates were another encouraging factor for markets.

Given that the S&P 500 was oversold, the wide nature of the bounce is not unexpected. Energy stock prices are well supported as WTI oil has reclaimed the $80 mark. In today's trading session, Marathon Petroleum, Hess, and Valero Energy are all up more than 4%.

Stocks of basic materials have increased as the price of commodities has generally increased. Leading gold producer Newmont increased by more than 3%, while Freeport-McMoRan, a producer of copper, increased by more than 2%.

Lecanemab, a medication for Alzheimer's, was shown to be effective in a late-stage experiment, which helped Biogen increase its share price by 38%. Today, shares of Eli Lilly, which makes a comparable medication, are up 8%.

From a broad perspective, traders will probably continue to pay attention to the movements of the US dollar and Treasury rates. The intricacies of demand for safe-haven assets are highlighted by demand for the US dollar. Stocks will get greater support if the US currency keeps falling.