City A.M. TV: Daily Market Snapshot (video)
With bond yields pulling back from their recent highs, there was a marked shift in equity market leadership yesterday.
In particular, the downward pressure on tech and growth related stocks eased, and those sectors led the market higher, with strong gains in the Nasdaq100 (+4.0 per cent); the Philly SOX (+6.1 per cent); and the S&P500 IT sector (+3.4 per cent).
Of interest, that move lower in bond yields (i.e. the rally in bond prices) has occurred from technically overextended levels. The key question, therefore, is whether this is the start of a renewed uptrend in equities, led, this time, by the growth and tech centric areas of the market?
Key macro data and events are light today, but include the February reading for US CPI inflation, which will be watched closely and has the potential to move markets (due at 1.30pm London time).