Stocks Fall As Rates Continue To Rise

EOD

Stocked moved lower by around 70 bps on the SPX, following the stronger-than-expected ISM data points. Tomorrow, we will get another dose of initial jobless claims, which will be sure to impact rates and continue to increase as the dollar stalls. 

The 2-year doesn't look like it has finished rising yet, with what looks like the potential to push back to 5.1%. Until the 2-year breaks above 5.1%, it is hard to say it has further to climb. It is really going to depend on the Fed, and right now, the market is at 50% on a November rate hike. Jobless claims can decide whether the 2-year reaches that 5.1% level.