Another day, another sharp spike in treasury yields which have moved higher by over 4bps overnight, and briefly topped 1.50%..
... as a result of a surge in 10Y breakevens (even as real rates sink on continued stagflation fears)...
... which is the direct result of today's spike in WTI and Brent, with the former rising above $78, the highest since the OPEC thanksgiving massacre in 2014, and Brent rising above $81.
The surge in yields is leading to continued selling in tech names, with Facebook tumbling almost 4%, not helped by last night's "whistleblower" appearance on 60 Minutes, while Amazon is down a little over 2% and is now red for the day.
And with the FAAMGs, which represent a quarter of S&P market cap, hammered, it's hardly a surprise that spoos are down to session lows, because as the growth to value rotation accelerates, there is no way on earth that tech can possibly rotate into energy which as of today account for a paltry 4% of market cap without energy names exploding higher.