Stocks Shrug Off Surging Yields, But For How Long?

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

  1. Moving the market

Stocks stumbled again as Treasury yields continued their relentless climb, fueled by expectations that the Fed may have another rate hike in store. The 30-year yield touched 5.446%, while the 10-year surged to 5.22%. A pullback in Oracle didn’t do the tech sector any favors either.

Adding fuel to the inflation fire, oil moved sharply higher, with Brent around $105 and WTI near $93. Fed funds futures now put the odds of another October hike above 70%, so the old “higher for longer” theme seems to have acquired a second wind.

Despite all that, stocks showed surprising resilience. The S&P 500 and Nasdaq clawed their way back to roughly unchanged, erasing their early losses even as bonds continued to get hammered. Apparently, equities haven’t received the memo yet.

Elsewhere, the dollar strengthened to its highest level since late July, putting additional pressure on gold, which is trying to defend the $4,300 area. Bitcoin, meanwhile, was content to tread water around $84,000.

The bigger question remains the bond market. Stocks have largely shrugged off the surge in yields, but that disconnect can’t continue indefinitely. Either yields eventually retreat, or elevated equity valuations will have to do some adjusting.

On a personal note, I’ll be out tomorrow, so tonight’s StatSheet wraps up the week for me.

When I return, will bond yields have finally taken a breather, or will stocks be the ones waving the white flag?

Continue reading…

2. Current domestic “Buy” Cycle (effective 5/20/2025); International “Buy” Cycle (effective 5/8/25)

Our domestic bullish cycle that began on November 21, 2023, concluded on April 3, 2025, following a market downturn triggered by President Trump’s tariff policy announcement.

This development caused significant declines across major indexes and broader market indices. However, markets subsequently rebounded, culminating in a new domestic “Buy” signal taking effect May 20, 2025.

Concurrently, our International Trend Tracking Index (TTI) experienced parallel volatility. On April 4, 2025, it breached critical thresholds, prompting a “Sell” recommendation. This position reversed as global markets recovered, with the International TTI regaining sufficient momentum to issue a new “Buy” signal effective May 8, 2025.

3. Trend Tracking Indexes (TTIs)     

Stocks stumbled out of the gate again but recovered most of their early losses as the session progressed. Metals joined the rebound but fell short of getting back to even.

Our TTIs eased lower as well, though both remain in bullish territory above their trend lines. Rising oil prices and bond yields provided the main headwinds, keeping the bulls from getting too comfortable.

This is how we closed 09/24/2026:

Domestic TTI: +2.57% above its M/A (prior close +3.09%)—Buy signal effective 5/20/25.

International TTI: +3.83% above its M/A (prior close +4.31%)—Buy signal effective 5/8/25.

All linked charts above are courtesy of Bloomberg via ZeroHedge.

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Higher Yields Trigger A “Sell Everything” Wednesday

Ulli Uncategorized Contact

[Chart courtesy of MarketWatch.com]

  1. Moving the market

Wall Street ran into a familiar troublemaker today: higher bond yields.

Hotter-than-expected economic data sent Treasury yields surging, with the 10-year climbing above 5.1% and the 2-year approaching 4.9%.

That revived fears that the Fed may not be finished tightening, especially after Governor Michael Barr reinforced the message that further policy adjustments may be needed to bring inflation under control.

Stocks got the message quickly. Utilities, consumer discretionary, and communication services led the retreat, while the broader market headed south pretty much from the opening bell.

Higher yields also lit a fire under the dollar, which pulled the rug out from under metals.

Gold slipped below $4,300, while Bitcoin joined the risk-off parade and dropped toward $84,000. Even crude oil’s advance couldn’t change the mood.

The bottom line: surging yields triggered a classic “sell first, ask questions later” session, and hopes that the approaching midterms might keep the Fed on the sidelines didn’t offer much comfort.

Apparently, Wall Street has rediscovered an old rule: when the bond market starts shouting, everybody else stops talking.

So, is today’s selloff just another shakeout, or are rising yields about to become the market’s biggest headache again?

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Oil Cools, Metals Rally, And Wall Street Waits For The Next Headline

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

  1. Moving the market

The Nasdaq pushed to another intraday record today, but the broader market mostly spun its wheels.

Oil continued to retreat on reports that Iran may reopen the Strait of Hormuz within seven days, while Saudi Arabia is reportedly preparing to restart its East-West pipeline. Neither development is a done deal, but it was enough to take some pressure off oil, stocks, and bond yields.

After yesterday’s strong rally, however, traders seemed content to catch their breath. The S&P 500 finished essentially unchanged, bond yields went nowhere, and the dollar took the scenic route before closing at its highest level since August.

Metals were more interesting. Gold climbed out of an early hole despite the stronger dollar, while silver and copper did even better. Bitcoin briefly touched $87,000 overnight before easing back, a well-deserved breather after its recent surge.

Bottom line: there was plenty of movement, but very little real direction. With the Trump-Xi summit approaching and Iran headlines still driving sentiment, traders remain glued to the news ticker.

Will the next headline finally give this market some direction, or just send us on another lap around the block?

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Risk-On Returns: Tech Rallies, Oil Slides, Bitcoin Breaks Loose

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

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Wall Street came out swinging Monday, shrugging off another round of Middle East tensions as falling oil prices, easing bond yields, and a powerful tech rally gave the bulls plenty of ammunition.

AI-related stocks did much of the heavy lifting, with Intel, AMD, and Qualcomm surging, while the Mag 7 once again flexed their muscles and easily outpaced the rest of the S&P 500. Apparently, when AI gets excited, geopolitical worries have trouble getting a seat at the table.

Oil provided another tailwind, with U.S. crude dropping about 5% despite escalating tensions in the Middle East. That helped ease inflation concerns, although with the Fed having just raised rates and energy supplies still vulnerable, the inflation battle is far from over.

Elsewhere, the dollar edged higher, gold and silver slipped modestly, but crypto stole the spotlight. Bitcoin jumped more than 6% to around $86,000 as ETF inflows accelerated, suggesting traders may be betting that Fed policy still isn’t restrictive enough to seriously dampen financial conditions.

Bottom line: It was a solid risk-on session, led by tech, helped by falling oil and yields, and accompanied by another burst of enthusiasm in Bitcoin.

The bulls clearly won today, but with geopolitics, inflation, and the Fed still lurking in the background, can they keep the party going without someone eventually turning on the lights?

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ETFs On The Cutline – Updated Through 09/18/2026

Ulli ETFs on the Cutline Contact

Do you want to know which ETFs are hot and which ones are not? Then you need my High-Volume ETF Cutline report. It tells you how close or far each of the 311 ETFs I follow is from its long-term trend line (39-week SMA). These are the ETFs that trade more than $5 million a day, so they are not some obscure funds that nobody cares about.

The report is split into two parts: The winners that are above their trend line (%M/A), and the losers that are below it. The yellow line is the line of shame that separates them. You can see how many ETFs are in each group and how they have changed since the last report (207 vs. 185 current).

Take a peek:

The HV ETF Master Cutline Report

If you are confused by some of the terms we use, don’t panic. I have a helpful Glossary of Terms for you.

If you want to learn more about the Cutline method and how it can make you rich (or at least less poor), read my original post here.

ETF Tracker Newsletter For September 18, 2026

Ulli ETF Tracker Contact

ETF Tracker StatSheet          

You can view the latest version here.

RATES RISE, STOCKS WOBBLE, BITCOIN DANCES TO ITS OWN BEAT

[Chart courtesy of MarketWatch.com]

  1. Moving the market

The Dow slipped Friday, putting the finishing touches on a volatile week as traders wrestled with higher bond yields, $100-plus oil, and the Fed’s first rate-hike in three years. Apparently, one headache at a time wasn’t enough.

The 10-year bond yield pushed back above 5%, adding pressure to equities, while the dollar climbed to its highest level since early August. Crude finished the week little changed but remained north of $100, leaving inflation concerns very much on the table.

Still, Thursday’s rebound, particularly in technology, showed that investors aren’t quite ready to abandon the AI growth story. The tug-of-war is pretty clear: higher-for-longer rates on one side, improving AI-driven profit expectations on the other.

The bigger question may be the Fed. This week’s hike removed some uncertainty, but Fed chief Welch suggested this may be the start of a hiking cycle rather than a one-and-done move.

Expectations for additional October and December hikes jumped, which could keep a lid on equities in the months ahead.

Metals held their own despite higher rates and a stronger dollar. Gold reclaimed the $4,400 level, while silver and copper turned in respectable performances.

And then there was Bitcoin. It surged more than 6% Friday, moved firmly above $81,000, and seemed largely unfazed by the collapse of the Clarity Act.

While the rest of the market worried about rates, oil, and the Fed, Bitcoin simply put on its headphones and danced to its own beat.

By week’s end, equities had absorbed three sizable shocks: the AI selloff, oil-driven pressure on bond yields, and a Fed rate hike. Yet the market is still standing, which may tell us something about underlying resilience.

So, as we head into next week, which force wins the tug-of-war: rising rates or traders’ determination to keep the bull market alive?

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