US stocks surged on Wednesday, led by technology shares, as investors refocus away from the US banking crisis and towards the direction of interest rates through the rest of the year.
Following the collapse of Silicon Valley Bank, interest rates have dropped to levels not seen in months, with the 2-Year US Treasury yield hovering around the 4% level, while the 10-Year US Treasury yield sits at about 3.6%. That's a far cry from the levels seen earlier this month, with the 2-year above 5% and the 10-year above 4%.
The fall in yields is boosting the types of stocks that were penalized for soaring interest rates, mainly technology stocks. The
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