US stocks close lower but major indices show resilience as oil and rates soar

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Given the sharp rise in yields (two year up 18 basis points and 10 year up 14.6 basis points) along with soaring oil prices (up over 7%). The US stock market hung in there although the major  indices  did close lower.

A look at the final numbers shows:

  • Dow industrial average -201.94 points or -0.58% at 34553
  • S&P index -1.94 points or -0.04% at 4461.12
  • NASDAQ index -55.37 points or -0.40% at 13838.47
  • Russell 2000 index fell -20.20 points or -0.97% at 2065.95

Technically, the S&P index traded above its 200 day moving average for the first time since mid February. That moving average comes in at 4471.68. However the price did close below that level at 4461.17. The price also close below the 50% midpoint of the move down from the all-time high set in early January at 4466.64. The price remains within shouting distance of those technical levels, so the buyers are still in play, but tomorrow will be another test for both the buyers and sellers.

In other markets as US trading comes to a close:

  • Spot gold is trading up $14.50 or +0.76% at $1935.85
  • Crude oil for May is trading at $110.41 that’s up $7.32 or 7.10%. The May contract settled at $109.97 up $6.88
  • Bitcoin is trading at $41,182.96. That’s $60 away from the higher close yesterday
  • wheat futures closed up $0.55 and $11.19. Corn futures rose $0.14 to $7.56

In the US debt market, yields were sharply higher. The current 2 year is trading up were up 15.4 basis points. The 10 year is up around 14.9 basis points. The two – 10 year spread is down to 18.6 basis points.

In the forex market, the CAD is ending the day as the strongest of the majors while the EUR is the weakest. The USD is stronger with a modest declines versus the CAD. The gains in the greenback were help by the higher rates

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