SP500 and NASDAQ Test New Highs as Treasury Yields Pull Back

The SP500 is testing new highs as traders react to a pullback in Treasury yields and maintain a bullish outlook on the tech sector. The yield on 2-year Treasuries dipped to 4.79%, while the 10-year yield settled near 5.27%. The FedWatch Tool shows a probability of a rate hike in October below 20%, which may support bond markets. Despite a rebound in oil markets due to tensions in the Strait of Hormuz, the SP500 has remained resilient, with utilities stocks leading the charge. Constellation Energy surged 11.7% after signing a 20-year energy deal with Google, boosting the utilities sector.

The SP500 is attempting to settle above the resistance level of 7815-7825. A successful move could push it toward 7900, though the RSI indicates overbought conditions, increasing the risk of a pullback. Support is found at 7720-7730 if the index dips below 7800.

The NASDAQ is also moving higher, driven by strong demand for tech stocks. Constellation Energy was the top performer, while chip and software stocks gained momentum. The NASDAQ broke past the resistance level of 30,750-30,800 and is eyeing the next resistance at 31,350-31,400. A move above 31,400 could send it toward 32,000, with the RSI still in moderate territory, suggesting room for further gains.

The Dow Jones is attempting to settle above the resistance level of 51,600-51,700, with Cisco leading the charge with a 4.3% gain. A breakthrough above 51,700 could push the index toward 52,300-52,400.