The University of Michigan commented: “Overall, lower-income consumers and younger consumers exhibited the strongest declines in sentiment. In contrast, sentiment of the top tercile of stock holders improved 10%, reflecting the recent strengthening in equity markets.”
Treasury yields are moving lower after yesterday’s rally, However, bond traders stay cautious as they fear that Fed may be forced to hold rates at current levels for many months.
U.S. Dollar Index moved towards the 106.00 level after the release of Michigan Consumer Sentiment report. From a big picture point of view, U.S. Dollar Index continues to move higher.
Gold settled near the support at $1940 as traders focused on stronger dollar. The broad pullback in precious metals markets put additional pressure on gold.
SP500 settled near the 4365 level. Stocks rebound after yesterday’s pullback, which was triggered by the sudden spike in Treasury yields. It remains to be seen whether the weaker-than-expected Michigan Consumer Sentiment report will have a material impact on stock price dynamics as traders focus on the developments in the debt markets.
For a look at all of today’s economic events, check out our economic calendar.