{"id":7725,"date":"2024-06-04T03:28:11","date_gmt":"2024-06-04T07:28:11","guid":{"rendered":"https:\/\/parmaks.com\/Resources\/bullish-reversal-supported-by-10-year-t-note-futures\/"},"modified":"2024-06-04T03:28:11","modified_gmt":"2024-06-04T07:28:11","slug":"bullish-reversal-supported-by-10-year-t-note-futures","status":"publish","type":"post","link":"https:\/\/parmaks.com\/Resources\/bullish-reversal-supported-by-10-year-t-note-futures\/","title":{"rendered":"Bullish Reversal Supported by 10-Year T-Note Futures"},"content":{"rendered":"

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Major Influence of 10-Year US Treasury Yield<\/h2>\n

The 10-year US Treasury yield<\/strong><\/em> has become a key factor in dictating the short to medium-term movements of major US stock indices. On May 31, key intraday bullish reversals in the S&P 500<\/strong>, Nasdaq 100<\/strong>, and Dow Jones<\/strong> were driven by an earlier rally in the 10-year Treasury Note futures<\/strong><\/em> that began in the European session.<\/p>\n

Watch the key short-term support level of 18,340 <\/strong><\/em>on the Nasdaq 100<\/em>. The Nasdaq 100<\/em> reached a fresh intraday all-time high of 18,907<\/strong> <\/em>on May 23, boosted by Nvidia\u2019s strong Q1 earnings and optimistic Q2 revenue guidance.<\/p>\n

Impact of Momentum and Earnings on Market Trends<\/h2>\n

While firm-based earnings are significant, the macro factor has now taken the lead since May 24. This can be understood by examining the movements of the 10-year US Treasury yield<\/em> and major US stock indices. From May 24 to May 29, the 10-year Treasury yield<\/em> rose by 15 basis points<\/strong><\/em> to a four-week high of 4.62%<\/strong><\/em>. During the same period, major US stock indices declined: S&P 500 (-1.31%)<\/strong><\/em>, Nasdaq 100 (-1.43%)<\/strong><\/em>, and Dow Jones (-2.45%)<\/strong><\/em>.<\/p>\n

Why Higher US Treasury Yields Affect Stocks<\/h2>\n
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