SPDR S&P 500 ETF Rallies on 9bps Yield Drop and 4% Oil Slide
SPY•Treasury yields fell with the 10-year sliding 9 basis points and the 30-year down 7 basis points, boosting SPDR S&P 500 ETF performance, while WTI crude dropped 4% to $99 per barrel after Trump said US-Iran talks reached final stages. Since March 30, SPDR S&P 500 ETF has closely tracked iShares Russell 2000 ETF following small-cap breakout tests at the $270 support level.
1. Bond Market Reaction
The US 10-year Treasury yield fell by 9 basis points and the 30-year yield declined by 7 basis points, reversing recent upward pressure on equity valuations and providing a boost to SPDR S&P 500 ETF performance.
2. Oil Price Pullback
West Texas Intermediate futures dropped 4% to trade near $99 per barrel after the president indicated US-Iran negotiations were in final stages, easing input-cost inflation concerns across energy-dependent sectors within the SPDR S&P 500 ETF.
3. Small-Cap Correlation
Since the March 30 market low, SPDR S&P 500 ETF has run roughly neck and neck with the iShares Russell 2000 ETF as small caps test the $270 level as a new floor, signaling potential strength or vulnerability in broader market momentum.
4. Implications for Investors
Investors will monitor whether the $270 support holds for the Russell 2000, as failure could trigger broader market pullbacks in the SPDR S&P 500 ETF, while sustained yield declines and easing energy costs may support further equity gains.
