Chart of the Day - Thursday, September 23rd, 2021

Today’s Chart of the Day was shared by Matt Weller (@MWellerFX). It's a daily candlestick chart of the US 10-year Treasury yield over the past six months. The 10-year yield broke out to its highest level in more than two months today, and it's now back above the widely watched 1.40% level. Stocks don't have to fall just because yields are rising, but rising rates will likely influence which areas of the market outperform. Cyclical sectors like Financials, Energy, and Industrials are likely to benefit from higher rates. On the other hand, it could prove to be a headwind for bond-proxy sectors like Utilities and Real Estate, and growth-oriented sectors like Tech. Watch for follow-through over the next few days to confirm this breakout. But as of today, the market is telling us that yields want to resolve higher.