From Investing.com: 2024-10-22 02:37:00

Stocks were down with a risk-off tone as rates rose sharply. CDX high-yield credit spread index also moved higher. Market breadth was poor, only 80 stocks up and 419 down on SPX. 10-year yield broke resistance, near 4.2%. If it surpasses 4.35%, could signal a breakout to 5%.

Nvidia stock rose 3%, supporting the market. Nvidia accounted for 150% of gains in Bloomberg 500, contributing 5.7 points. Implied volatility nearing 60%, signaling a gamma squeeze as call options become less profitable.

Small-cap stocks, like IWM, dropped 1.6% as 10-year rate surged. HGX and XLF also fell as rates continue to rise, indicating more declines ahead. Sectors like real estate and financials seem to move in tandem with interest rates.



Read more at Investing.com: 10-Year Yield Eyes Major Breakout – A Return to 5% Could Be Imminent