When Treasury Yields/Bonds Interest Rates rise it can often mean a drop in the stock market
When the economy is booming, so is the stock market. Greater growth can be achieved through investments.
When the economy is in turmoil, think about slow economic growth, pandemic, and all of the stimulus checks (free money), uncertainty may cause investors to take their money out of the stock market.
Those who are retired, hedge funds/fund managers, or those who do not want to deal with an uncertain stock market will often diversify these short term treasury notes to secure a very modest interest rate (<3%) and not risk losing money in the market.
The sell off of all securities to purchase these treasury notes often leads to major indices to go down since investments are often the major holdings of the indices (e.g. META - Facebook, AMZN - Amazon, NFLX - Netflix, AAPL - Apple, GOOG - Alphabet formerly Google, TSLA - Tesla)
High Volatility due to Market Sell Off of Options
March, June, September, and December
Third Friday of the month
These dates have a large number of options that expire on these dates
S&P (SPY), NASDAQ: Red days due to the large volume of selling
Funds that represent the treasury and bonds are in direct opposition and will often go up.