It’s tough to find any sellers in the US equity market.
Once again today, a soft start has turned into a decent gain in the Nasdaq Composite. It’s up 0.4% in the fourth straight day of gains. A turn in the Treasury market has helped to sustain the bid today (US 10s now down 3.6 bps) but yields overall are higher since the the four-day streak began and the Fed funds market has been pricing in less easing.
A big help is oil, which had been a solid trade for much of the year. It’s all come undone in the past month though and that’s continued with a 4% decline in WTI today and a 4.4% decline in natural gas. The fall in energy prices will be a drag on inflation and raises the odds that we’re back in a low inflation, low growth scenario.
That scenario was spectacularly good for tech in the past decade and bodes well going forward.
Technically, it’s blue sky now up to the all-time highs at 16,212 but the psychological level of 15,000 should pose a hurdle.
Nasdaq daily