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Yesterday, US equity indices closed lower again. The S&P 500 fell 0.87%, the Nasdaq 100 dropped 1.00%, and the Dow Jones Industrial Average plunged 1.32%.
Today, the MSCI Asia-Pacific equity index rose 0.6%. Futures on US indices also showed modest gains, while European equities prepared for a muted open after seven days of declines.
The 30-year US Treasury yield held at 5.25% after a nine-basis-point fall on Wednesday and a six-basis-point jump on Thursday. The market stabilized after two days of sharp swings, during which investors tried to assess whether Washington's efforts to cap long-term yields via bond buybacks will do more than provide a temporary respite. The dollar weakened against all major currencies.
Notably, yields rose on Thursday even after Treasury Secretary Scott Bessent signaled the possibility of larger buybacks and unveiled a fiscal plan. The expanded buyback proposal did not convince investors that it can sustainably contain long-term borrowing costs. Mr. Bessent sought to play down the moves as 24-hour noise and confirmed that expanded buybacks could exceed the $4 billion planned for next month. Nonetheless, market participants warned that a lack of predictability in the Treasury's debt strategy could ultimately translate into higher borrowing costs.
Gold rose 0.7% to about $4,550 an ounce, heading for a third weekly gain. Bitcoin continued its rally in Asia, jumping as much as 6% to $77,000, putting it on track for its best weekly performance in more than two years. Brent eased 0.3% to about $93.45 per barrel, ending a five-day rally.
A technical picture for the S&P 500 suggests that buyers' immediate task today is to clear resistance at $7,679. That will show strength and open the way to $7,698. Controlling $7,718 would further cement the bulls' position. On the downside, if risk appetite fades, buyers must defend $7,656. A break there will quickly push the index back to $7,633 and open the road to $7,607.
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