Nasdaq, S&P 500, Dow Jones edge higher in choppy session, 10-year yield back above 3%

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Stocks eked out thin gains on Monday, continuing the uncertain trading that marked most of last week. Wall Street opened higher following Friday’s dip but suffered a down draft in the late morning with the S&P seeing resistance again at 4,165.

The Dow Jones (DJI) ended with a fractional advance, the S&P 500 (SP500) closed +0.3% and the Nasdaq (COMP.IND) finished +0.4%.

The Dow Jones eked out a gain of 16.08 to close at 32,915.78. The S&P 500 climbed 12.89 points to end at 4,121.43. The Nasdaq concluded trading at 12,061.37, rising 48.64 points on the session.

Eight of 11 S&P sectors finished higher, but most of the gains were mild. Consumer Discretionary represented the only segment to post an advance of at least 1%.

“Lately, these markets have been so choppy and sloppy traders and investors need to start the day with a dose of Dramamine,” trader Nicholas Santiago tweeted.

Turning to the bond market, selling pushed rates higher, with the 10-year yield topping 3%. Specifically, the 10-year Treasury yield rose 8 basis points to 3.04% and the 2-year climbed 6 basis points to 2.73%.

Given continued worries about interest rates and uncertainty about the economy, the S&P has been trading in a range of 4,300 to the upside and 3,800 on the downside since the start of May. In this environment, technical factors often to come to the forefront, until another round of data comes along to drive markets.

“There are three key indicator levels to break above to favor a continued rally beyond 4114-4160 resistance on the SPX: (1) 3123 on the US top 15 most active advance decline (A-D) line; (2) 46.3-48.7 on percentage of SPX stocks above 10-day MAs; and (3) 1.10-1.11 on the 3-month VIX relative to the VIX,” BofA technical strategist Stephen Suttmeier wrote in a note.

“If these signals fail to materialize, the immediate risk would shift back to the downside with the 3800s key support. The rising 200-week MA near 3500 offers important support for the 2022 cyclical correction (aka bear market), or mean reversion, within a secular bull market.”

Among active stocks, Enphase Energy was among the biggest S&P gainers, as solar stocks rallied on a tariffs waiver.