Stock Market Update

[BRIEFING.COM] The major indices have moved well off their opening lows and back into positive territory in the case of the S&P 500, Nasdaq Composite, and Russell 2000.

Their recovery has been aided by buy-the-dip interest that kicked in when both the S&P 500 and Nasdaq Composite breached support at their 50-day moving averages at the start of today's trading. That is a key technical support level, and it has yet to be violated on a closing basis since the recovery rally got going in April.

With the drastic improvement in the stock market, the safe-haven bid seen in the Treasury market has faded away. The 2-yr note yield, which skimmed 3.54% earlier, is at 3.60% now, up one basis point from yesterday's settlement. The 10-yr note yield, which slipped to 4.07%, is at 4.14% now, up two basis points from yesterday's settlement.

The reversal in Treasuries was also hastened by yet another hawkish-minded position from a Fed official about a December rate cut. This time, Kansas City Fed President Schmid (FOMC voter) said that he is leaning against a December rate, noting that monetary policy is modestly restrictive and where it should be.