S&P 500 Faces Volatility Risks from Rising Oil Prices

The S&P 500 has been experiencing a calm market recently, but experts are warning of potential volatility in the near future.

Rising oil prices could be one factor contributing to increased volatility, with West Texas Intermediate (WTI) crude breaking through resistance at $93 and potentially clearing the way for a surge back to $101 or higher.

The 2-year Treasury yield is also expected to rise in response to higher oil prices, as it has historically trended together with oil prices.

A stronger yen could also pose problems for markets, particularly if it weighs on Japanese equity prices. The USD/JPY exchange rate has broken below support at 155 and is threatening to fall toward its next support region around 152.