City A.M. TV: Daily Market Snapshot (video)
There was a sharp shift in tone in markets yesterday, with the back-up in bond yields causing significant disruption in the equity market.
Of note, that disruption spread beyond the tech and growth sectors – with weakness in all 11 S&P500 sectors, all 24 S&P500 industry groups, and all the key US headline equity indices that we monitor. The key question, at this juncture, therefore, is whether that downside momentum will (continue to) build over coming trading days. How bond yields behave will of course be key. So too, though, is the evolving message of our short term trading models.
Key events today include a important vote in Congress (with the House voting on Biden’s fiscal stimulus package) as well as a G20 finance ministers meeting. We also get the January reading for US personal income and spending which will give an updated picture on the health of household finances.