Chart of the Day - Wednesday, August 16, 2023

Today’s Chart of the Day was shared by Liz Ann Sonders (@LizAnnSonders). The US 10-year Treasury yield broke out to a 15-year high today. It peaked last October, around the same time the S&P 500 bottomed. It's formed a 10-month base since then, and it looks ready to resume its uptrend. Stocks have pulled back on the heels of this resurgence in yields. Growth stocks are particularly sensitive to rising yields, as the opportunity cost of holding these long-duration assets becomes greater as yields rise. To make matters worse, the US dollar is also putting pressure on stocks as $DXY reached a two-month in today's session. The wrecking balls of 2022 are making an ominous comeback, and stocks are starting to notice.