Industrial Stocks Near Trend Break as Low U.S. Rates End Rallies
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An exchange-traded fund of industrial stocks is nearing a technical support level as interest rates fall, signaling the ETF’s underperformance could continue.
The Industrial Select Sector SPDR Fund has lagged behind the SPDR Standard & Poor’s 500 ETF by 3 percentage points since Nov. 25 as this stock price ratio has decreased each month this year. During the same time, the yield on 10-year Treasuries has fallen to 1.86 percent from 2.26 percent -- see chart.