Bond-Equity Mixed Signal Tension
Stronger-than-expected economic reports may be creating mixed signals in the bond market, affecting the S&P 500.
Too little corroboration in the last 3 days to call a trend (2 articles). Watching for it to gain traction.
"The Dow Jones Industrial Average experienced a slight dip, while the S&P 500 saw a marginal gain at the opening bell."
"Additionally, following its sharp move higher, the index has formed a broadening wedge pattern. These are not easy patterns to interpret. A breakout to the upside is certainly possible—and may even be favored given the prevailing bullish trend—but more than anything, it reflects a growing sense of indecision in the market."
"Bespoke Investment Group noted a statistical oddity about the S&P 500 through Monday's close: It was up by almost the exact same percentage 164 sessions into President Donald Trump's second administration as it was after the same duration in his first."
"Hopes for lower tariffs because of trade deals that Trump could reach with other countries were the main reasons for Wall Street’s big rally last month."
"Treasury yields eased in the bond market following some mixed reports on the U.S. economy."
"Treasury yields were mixed in the bond market following reports showing the U.S. economy may be stronger than expected, but manufacturing may be contracting again."