S&P 500 Flat as Falling Yields Lift Tech But Weigh on Financials

SectorFinancial Markets

© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 was flat Wednesday, as slip in U.S. bond yields supported tech but hurt bank stocks amid signs that investors are buying into the Federal Reserve’s view that inflation is transitory ahead of Thursday’s consumer price report.

The rose 0.04%, the was up 0.1%, or 40 points, and the was up 0.10%.

Easing worries that runway inflation is the horizon prompted investors to scale back their bearish bets on the Treasuries, forcing yields, which trade inversely to price, to move to levels not seen in a month.

The short-covering in Treasuries comes just a day ahead of the consumer inflation data, with economists expecting headline inflation at the fastest pace since 2008.

But the sluggish action in bond yields suggests the market is betting that the Federal Reserve’s inflation narrative could be the right call.

” [T]he bond market is signaling this [inflation] is all very transitory and has been quite supportive of...read more...