Trading Insights

S&P 500

Liquidity Concerns Rise as Yields Climb into Jackson Hole


The S&P 500 turned cautiously bearish as Treasury yields climbed ahead of this week’s Jackson Hole symposium. The Fed faces a difficult choice: tighten further and risk draining reserves, or ease to support liquidity. With Fed Funds Futures reducing the odds of a 50bps cut and the RRP balance falling to its lowest level since 2021, markets are watching whether the Treasury’s heavy bill issuance forces the Fed’s hand.
Key Levels: Support at 6,426 | Resistance at 6,506 / 6,558