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Despite an exchange of fire the previous day when US forces attempted to forcefully open the Strait of Hormuz, Washington stated that the fragile ceasefire agreement remains in effect. However, the United Arab Emirates said the country is under attack by Iranian missiles and drones. On Tuesday (May 5th) in late New York trading, the yield on the US 10-year benchmark Treasury note fell by 2.3 basis points to 4.417%. The 2-year US Treasury yield fell by 1.5 basis points to 3.939%. The 5-year US Treasury yield dropped by 1.1 basis points to 4.075%.

Since early March, this has indeed been a significant fluctuation, so we are currently at a higher level. It appears that if Brent crude oil prices continue to rise at a rate of 3 to 5 USD per day, interest rates may increase, but this also begins to make fixed income assets more attractive, especially in the middle segment of the yield curve.

"If we look at the S&P 500 Index, it is at a historic high, but the median stock in the index is still about 13% below its own high," Snider said. "This is one of the most significant disparities in the past 25 years. From a market perspective, this does send some warning signals." Of the last five record closing highs in the S&P 500 Index, four occurred when the number of declining stocks exceeded the number of advancing stocks. BofA Global Research strategists pointed out that in April, only 23% of S&P 500 constituents outperformed the index, making it the fourth lowest monthly value since the bank began tracking data in 1986.