Bloomberg
(Bloomberg) -- Stocks fell after the biggest equity rally in nine months spurred speculation about excessive investor optimism amid stretched valuations and higher Treasury yields.The S&P 500 retreated, led by technology, real-estate and industrial companies. Zoom Video Communications Inc. climbed on an revenue forecast that topped analysts’ estimates, while Target Corp. rose as its fourth-quarter performance beat expectations.Stock market optimism among Wall Street strategists has risen close to levels that signaled trouble for equities in the past. A Bank of America measure of their bullishness is near a threshold that historically has been bearish for stocks. The gauge assesses the average recommended allocation to equities by strategists and is very close to triggering a sell signal.Read: Wall Street Bullishness Is Becoming a Contrarian Sell SignalThe correlation between real yields and U.S. equities dropped to its most negative level in five years last week. That strong inverse relationship suggests inflation-adjusted Treasury rates have reached levels where further gains could quickly send the S&P 500 lower, as they feed into steeper borrowing costs and lessen the appeal of other assets.There are some key events to watch this week:U.S. Federal Reserve Beige Book is due Wednesday.OPEC+ meeting on output Thursday.U.S. factory orders, initial jobless claims and durable goods orders are due Thursday.The February U.S. employment report on Friday will provide an update on the speed and direction of the nation’s labor market recovery.These are some of the main moves in markets:StocksThe S&P 500 fell 0.3% as of 9:49 a.m. New York time.The Stoxx Europe 600 Index rose 0.5%.The MSCI Asia Pacific Index declined 0.3%.The MSCI Emerging Market Index was little changed.CurrenciesThe Bloomberg Dollar Spot Index increased 0.1%.The euro dipped 0.1% to $1.2034.The Japanese yen depreciated 0.1% to 106.91 per dollar.BondsThe yield on 10-year Treasuries rose two basis points to 1.43%.Germany’s 10-year yield climbed one basis point to -0.33%.Britain’s 10-year yield dipped one basis point to 0.75%.CommoditiesWest Texas Intermediate crude gained 0.8% to $61.10 a barrel.Gold rose 0.3% to $1,730.05 an ounce.Silver fell 0.6% to $26.41 per ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
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