Decline In Bond Yields In The US Put Nasdaq On The Rise

The 10-year bond yield in the US fell below 1.70 percent, while the Nasdaq 100 index increased by 2 percent.

The decline in 10-year bond yields in the US put Nasdaq on the rise. While the said yield fell below 1.70 percent, the S&P 500 went up. The increase recorded in the Nasdaq 100 Index was 2 percent. The decline in bond yields created a tailwind for stocks, while tech stocks led US equity earnings. While the S&P 500 Index increased, the Nasdaq 100 Index increased by about 2%, with 10-year US bond yields falling below 1.70% from their peak in about 14 months. Treasury sales last week in the US clearly reminded that investors remain concerned that a stronger economic recovery could raise inflation, despite reassuring comments from policy makers. However, market dynamics believe that growth will increase company profits as vaccines try to contain the coronavirus epidemic. Commenting on the issue, Baird investment strategy analyst Ross Mayfield said, "The increase in long-term yields has affected every movement we see in the stock markets, from big sales in high growth elements to the return to economically more sensitive sectors."