Chart of the Day - Tuesday, April 13th, 2021

Today’s Chart of the Day was shared by Liz Ann Sonders (@LizAnnSonders). The chart shows the US 10-year Treasury yield in blue along with two closely watched ratios below.  A few weeks ago, we discussed why yields were probably due for some pause, and that's pretty much what we've seen play out since then. Liz Ann points out that while yields have calmed down in recent weeks, the Nasdaq has begun to outperform the Russell 2000, and Growth has begun to outperform Value. Looking at this chart, it's pretty clear that the action in yields has been driving these relative trends in the stock market. If yields continue to stabilize or move lower, it would likely be a favorable environment for Growth-oriented areas of the market like the Nasdaq.