Shares of the Vanguard Total Stock Market Index Fund ETF (NYSEARCA: VTI) fell over 2% as US equity markets fell in tandem driven by rising US Treasury yields.
Investors were spooked by the rising US Treasury yields, making government bonds very attractive as a safe-haven asset.
The markets expect the Federal Reserve to announce a path to hiking rates at their next meeting as the US economy recovers.
However, Fed Chair Jerome Powell has allayed fears of a rate hike at the FOMC’s next meeting, saying that the US labour market is yet to reach full employment status.
The VTI stock chart below shows that the index has fallen below the crucial 50-EMA, which indicates that the US stock markets are in a medium-term downtrend.
The VTI is an ETF that tracks all the major US stock indices, including the S&P 500, the Dow Jones index and the Tech-heavy NASDAQ giving investors exposure to the entire market.
As a short term trader, I would be looking for opportunities to short stocks if the VTI remains below the 50-day EMA.
However, shorting stocks and other market instruments are advanced trading strategies that are unsuitable for all investors.
Most investors will be best served to look for buying opportunities in stocks with solid fundamentals and favourable prospects that have fallen along with the broader stock market.
*This is not investment advice, as the writer is expressing his opinion about stock market movements. Always do your due diligence before making investment decisions.
VTI stock price.
VTI stock price over 2% today to trade at $224.59 and was headed lower at writing.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading