Dow Stumbles 115 Points as S&P 500’s Rally Hits a Wall

Wall Street’s sugar rush fades—traders dump stocks like yesterday’s NFT fad. The Dow bled out while the S&P snapped its six-day winning streak. Guess the ’soft landing’ narrative hit some turbulence.

Funny how traditional markets panic over a 0.3% dip while crypto routinely eats 20% swings for breakfast. Maybe they should try some of that decentralized volatility—we’ve got spare seatbelts.

Equity valuation challenges

Analysts say yields at or above 4.5% tend to challenge equity valuations. “If the 30-year is breaking out, does that mean the rest of the curve is next?” said Manulife’s Matthew Miskin. 

Morgan Stanley’s Michael Wilson noted that equities have consistently faced valuation pressure when the 10-year yield breaches 4.5%.

Elsewhere, Tesla shares rose 2% after Elon Musk reaffirmed his commitment to remain CEO for at least five more years. On the political front, President TRUMP failed to win over GOP holdouts on a key tax bill, jeopardizing its passage before Memorial Day.