Major market averages rebounded from their premarket lows on Monday and push higher despite the dollar strengthening and yields rising.
The Nasdaq Composite is +1.4%, the S&P 500 is +0.6%, and the Dow is +0.1%.
The S&P should find some support around the June lows of 3,640, but it will ultimately move lower and 3,500 is a reasonable near-term price target, Wolfe Research said.
Last week saw more than 500 basis points to global rate tightening.
Of the 11 S&P sectors, seven are higher led by Info Tech. At the same time, the Real Estate segment is the best performer.
The 10-year Treasury yield (US10Y) is up 7 basis points to 3.76%. They have climbed for eight consecutive weeks. The 2-year yield (US2Y) is up 1 basis point to 4.22%.
The U.S. dollar continues its surge and pound sterling's freefall continued as it fell below $1.04 for the first time ever. Cable is bouncing back a bit now at $1.08. The 2-year Gilt year soared at one point 63 basis points to 4.54%.
"The global signals from the UK’s mini-budget matter," UBS chief economist Paul Donovan said. "Modern monetary theory has been taken into a corner by the bond markets and beaten up. Advanced economy bond yields are not supposed to soar the way UK gilt yields rose."
"This also reminds investors that modern politics produces parties that are more extreme than either the voter or the investor consensus. Investors seem inclined to regard the UK Conservative Party as a doomsday cult."
Among active stocks, casino stocks are surging on looser restrictions for Macau.