DISCONNECT BETWEEN RISING YIELDS AND AI FRENZY DRIVEN STOCKS WIDENS, BLOW OUT ADP DATA
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
AI Driven Disconnect Widens
Please click here for a chart of 7-10 Year Treasury Bond ETF IEF.
Note the following:
- The chart shows that the bond ETF has fallen to the support zone.
- Bonds move inverse to the yield.
- The reason IEF has moved down is because yields have risen.
- This is an important chart because stocks compete with bonds. 10 year Treasury bond yield is the reference benchmark to compare with stocks.
- In yesterday’s Afternoon Capsule, we shared with you that FOMC minutes were hawkish.
July 6, 2023