Diverging Stocks and Credit Spreads Could Spell Trouble for the Market
From Investing.com: 2025-04-29 00:51:00
On Monday, the USD strengthened by over 1% against the EUR, while the JPY gained 80 bps. Stocks remained flat and yields moved lower amidst the USD strength. Credit spreads widened slightly over the past two days, while the S&P 500 rallied. Implied volatility rose to 25.2, and VIX 1-day may continue to rise. Equity financing costs decreased, with futures contract dropping to 49.5 bps. The divergence between stocks, credit spreads, and the yen may not be sustainable, suggesting a possible reversal in the stock market. Technical patterns indicate a potential return to the 5,100 level for the S&P 500.
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