U.S. stocks are holding relatively calm despite elevated Treasury yields and signs of lingering inflation pressure. FINTECH.TV correspondent Mark Payton joins Remy Blaire from the trading floor in Chicago as most major U.S. stock averages turn positive and the Nasdaq reaches record highs.
Payton points to the VIX around 15.5, reflecting relatively low equity market volatility even as the 10-year Treasury yield remains near 5.3%, around levels not seen since 2002. At the same time, the latest ISM Services Index came in at 54.9, signaling continued expansion in the services side of the economy.
The prices component of the ISM report jumped to 74, its highest level since July 2022. Despite elevated yields and signs of inflation pressure, Payton notes that those concerns have yet to translate into significant fear in the stock market.