Wall Street opens higher then fades as yields rise again

The main US equity benchmarks started the session in positive territory but soon surrendered those early gains as Treasury yields climbed. The yield on the 10-year note added 5 basis points to reach 5.212%, increasing the pressure on stocks.

August's durable goods orders were little changed overall, though stripping out transportation, they increased by 0.3%, hinting at some solid demand. The University of Michigan consumer sentiment survey also beat expectations, while the one-year inflation outlook stayed elevated at 4.6%, versus 4.0% a month earlier. For equity traders, that mix matters: growth signals are encouraging, but sticky inflation can keep yields elevated.

The video above examines the technical setup for:

• The S&P 500
• The Nasdaq Composite
• The Nasdaq 100

Each index tested a critical support level on Tuesday. In every instance, buyers emerged near that zone and pushed prices off the lows, leaving the benchmarks roughly flat on the day. That showed a positive response from the bulls, yet those support levels are still being tested today.

The key challenge now is whether buyers can defend those levels once more as yields rise. If they hold above support, Tuesday's bounce may continue. A clear break and sustained weakness would shift control back to the sellers.