The Dow and S&P are at all-time highs, but what are tumbling small caps and Treasury yields trying to say? Off nearly 1% today, the Russell 2000 (IWM) has returned to flat on the week after gaining about 2.5% on Monday. It's down roughly 9% from the March high.
The 10-year Treasury yield, meanwhile, is off a big seven basis points today to 2.54% - its lowest print since October. A dovish monthly inflation report from England is helping, as are ideas the ECB is prepping even easier monetary policy to be announced at its June meeting. Ignored is today's PPI index showing a 0.6% jump in wholesale prices in April vs. expectations for just a 0.2% bump. TLT +1.1%