Stocks Rebound As Treasury Yields Pull Back

Tech Stocks Set For A Rebound

S&P 500 futures are up by about 1% in premarket trading as traders rush to buy stocks amid pullback in Treasury yields. The yield of 30-year Treasuries has declined from 2.32% to 2.26% while the yield of 10-year Treasuries has pulled back from 1.60% to 1.54%.

Declining yields have provided significant support to tech stocks which were under pressure in recent trading sessions, and Nasdaq futures are up by 2% in premarket trading.

The recent pullback has clearly pushed some traders to “buy the dip” in tech stocks. The continuation of the current rebound will likely depend on the trading action in U.S. government bond markets. If Treasury yields continue to move lower, the stock market will get additional support.

Falling Yields Provide Support To Precious Metals

Falling Treasury yields have put pressure on the U.S. dollar which pulled back from recent highs. The U.S. Dollar Index, which measures the strength of the U.S. dollar against a broad basket of currencies, has declined from 92.50 towards the 92 level.

A combination of weaker dollar and lower yields provided material support to precious metals which are currently trying to rebound after the recent sell-off.

Gold is trying to settle above the $1700 level while silver is attempting to settle above the resistance at $25.85. In this light, shares of gold and silver miners look ready for a strong start of today’s trading session.

Oil Rebounds After Yesterday’s Sell-Off

Yesterday, WTI oil made an attempt to settle above the $68 level but got hit by a wave of profit-taking after traders realized that the Houthis’ attack on Saudi Aramco facilities dealt no damage.

Today, WTI oil is trying to settle back above the $65 level as traders focus on tighter supply after the recent OPEC+ decision to extend current production cuts which includes a voluntary cut of 1 million barrels per day (bpd) from Saudi Arabia.

In case WTI oil manages to settle above the $65 level, it will likely gain additional upside momentum and move closer to recent highs which will be bullish for oil-related equities.

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