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Market Brief – Tuesday 9/8/20

Stocks fell in overnight trading after news broke over the weekend that a large trader had exited its speculative options positions on several technology stocks. Treasury yields also fell in overnight trading while the dollar rallied. Buyers stepped in during early trading to buy stocks and sell bonds.

The National Federation of Independent Businesses Small Business Optimism Index rose to 100.2 in August from 98.8 the prior month as an indication small business owners are more optimistic.

Today’s $50 billion 3-year Treasury Note auction was met with weak demand as foreign bidders took 50.7% of the auction and domestic bidders took 13.0% of the auction, leaving securities dealers with 36.3% of the auction. Treasury yields rose following the auction.

After failing to rally off their morning lows, stocks headed lower to close in the red. Treasury yields also closed lower but sellers fought back and pushed yields up from their early morning lows. The dollar closed higher on the day.