Stocks Melt-Up As Bond Yields Spike Most In 2 Years

Tyler Durden's picture

The market remains confused. The better-than-expected headline jobs data prompted USD strength (Taper-on), gold/silver weakness (Taper-on), Homebuilder stocks drop (Taper-on), Bond yields surge (Taper-on), and credit market widening (Taper-on); but the good-old trusty US equity market was not having any of that. After dumping 25 points from its post-NFP highs, S&P 500 futures gapped and jerked up to VWAP, ran stops at the highs of the day, dropped back to VWAP, then surged into the close. The Dow ended up 150 points. Treasury yields rose the most in 2 years - an impressive 22bps. Despite a late surge, high-yield bonds had their worst day in 2 weeks. Gold and silver down 2.3% and 3.5% respectively and copper dumped 3.2% (not exactly the growth-exhibiting factor that everyone suggests is driving stocks up and bonds down). Meanwhile, WTI topped $103 for its highest close in 14 months.

 

A 'well-supported' rally in the markets...

 

The S&P closed above its 50DMA for the first time in 2 weeks... with the best 8-day run since the start of the year - and it looks like (for cash markets) this fills the post-FOMC gap...

 

and the NASDAQ (thanks to AAPL's great week and today's loss) is now above FOMC levels...

 

Treasuries were battered... closing at their high yields of the day with 7Y underperforming +26bps on the week.

 

Spot the odd market out... (credit was not playing along with stocks)

 

But the late-day 330Ramp Capital driven idiocy was insane... with plunging volume

 

Homebuilders did it again (though managed to rally along with the market from early lows) and Discretionary laughs in the face of a Taper...

 

WTI surges 7% and above $103, gold and silver hurt as the USD rips and Copper ignoring the growth meme...

 

Charts: Bloomberg and Capital Context

 

Bonus Chart: Gold and AAPL continue their dance...