BAY (MarinaProtocol) 24-hour amplitude reaches 40.1%: Increased trading volume triggers low liquidity volatility

The Energy Select Sector SPDR ETF, which tracks US energy stocks, has surged over 43% year-to-date, far outperforming other S&P 500 sectors. Despite this, the energy sector remains one of the lowest-valued sectors within the S&P 500. High oil prices have led to excess profits for energy stocks; although Wall Street previously viewed this round of earnings growth as a temporary phenomenon, if elevated oil prices persist longer than expected, the valuation recovery of energy stocks may have only just begun.

U.S. Treasury bonds are currently facing multiple pressures, including high oil prices intensifying inflation, rising expectations of Federal Reserve rate hikes, soaring fiscal deficits, and large-scale corporate bond issuances. At the same time, the $6 billion buyback scale has fallen short of market expectations. While Bessent had previously made lowering long-term yields a policy goal, on Tuesday he admitted that it's impossible to change the "equilibrium" price of government bonds. Analysts pointed out that buybacks cannot stop the fundamentals-driven yield trends, likening it to "the Treasury bringing a pea shooter to a tank battle."