Stocks remain under the thrall of higher yields and higher oil. Here's what's ahead
Wall Street got a taste this week of what a reprieve on both fronts could mean for the stock market.
TL;DR
- Higher oil prices and Treasury yields are the primary forces impacting the stock market.
- A weak September jobs report led to a stock rally as yields retreated, suggesting the Federal Reserve may pause rate hikes.
- Oil prices also declined on reports of potential strategic fuel reserve releases.
- Tech stocks, especially Nvidia and semiconductor makers, performed well, but much of the market saw losses.
- October historically performs well for major averages in midterm election years, but market breadth is a concern.
- Poor market breadth in September indicates a potentially broken market, but could also signal an upcoming rally.
- A significant portion of S&P 500 sub-industries are trading below their 50- and 200-day moving averages, which could indicate a market bottom is near.