Dow, S&P 500, Nasdaq Futures Slip As Global Bond Rout Catches Up With Markets: LUNR, MSTR, WYFI, AMLX Stocks In Focus
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On Tuesday, all three benchmark indexes closed lower, extending to three consecutive sessions of declines. Technology stocks took a hit from rising bond yields, with Nvidia, Micron Technology, and Broadcom shares all declining at close. Meanwhile, markets will watch the Federal Reserve’s July meeting minutes on Wednesday for cues on the economy. U.S. stock futures traded lower in the overnight session late Tuesday as a global bond selloff and higher oil prices weighed on investor sentiment, The U.S. 30-year Treasury yield climbed to a fresh 19-year high on Tuesday, and was trading at 5.274% at the time of writing. U.S. 10-year Treasury yield was at 4.692%.Dow futures were down 0.07%, while the S&P 500 futures and Nasdaq-100 futures were down 0.06% and 0.14% at 10:27 PM EDT. On Tuesday, all three benchmark indexes closed lower, extending to three consecutive sessions of declines. The tech-heavy Nasdaq Composite led the decline, shedding over 355 points to close 1.33% lower. The Dow and S&P 500 were down 0.22% and 0.69% at close respectively. IndexMoveCloseDow Jones Industrial Average-0.22%53,343.40S&P 500-0.69%7,691.76Nasdaq Composite-1.33%26,289.71Key US Market DriversRenewed tensions between the U.S. and Iran have pressured global bond prices. While U.S. long-term yields notched nearly two-decade highs, Japan’s 10-year bond yield jumped to its highest level in 30 years. German 30-year Bund yields climbed to their highest level since 2011, while France’s 30-year bond yields hit levels last seen in 2008.“Today some investors are likely rotating a bit from equities to bonds. This trade is bound to pick up as bond prices continue to fall and yields rise. I don't think yields will rise high enough to make bonds a good investment, but in the short run they may lose less than stocks,” Economist Peter Schiff said in a post on X. Technology stocks took a hit from rising bond yields, with Nvidia Corp. (NVDA), Micron Technology (MU), and Broadcom Inc. (AVGO) all dropping more than 2%, 7%, and 3% respectively. The iShares Semiconductor ETF (SOXX) fell nearly 5% at close, while the Vanguard Information Technology ETF (VGT) lost more than 2%. Despite the selloff, founder and CEO at Trivariate Research Adam Parker believes that the economy is still strong enough. “I think the earnings and cash flows from these big companies are strong enough that they’ll power through any kind of scare that happens around this,” he told CNBC on Tuesday.Global oil prices jumped higher on Tuesday. Brent crude futures expiring in October were up about 0.87%, trading at $91.81 a barrel at the time of writing. Meanwhile, WTI crude futures expiring in September were trading at $85.79 per barrel, up about 1%.Meanwhile, markets will be watching for the Federal Reserve’s July meeting minutes on Wednesday to gather cues on the economy. Among top retailers, Target is expected to report earnings on Wednesday and Walmart on Thursday. Trending Stocks To Watch Intuitive Machines Inc. (LUNR): Shares of the space company plunged more than 5% at close after Canaccord lowered the price target on the company to $39 from $41 but kept a ‘Buy’ rating on the shares.Strategy (MSTR): Shares of the company were on the retail radar after declining more than 5% at close amid weakening Bitcoin prices and a recent announcement that it had sold about 3.5 million shares of MSTR common stock through its at-the-market (ATM) program. WhiteFiber Inc. (WYFI): The stock plunged more than 18% overnight after it announced that it intends to offer $250 million of Convertible Senior Notes due 2032 in a private placement. Amylyx Pharmaceuticals Inc. (AMLX): The biopharmaceutical company jumped onto the retail radar after it announced that it has commenced an underwritten public offering of $350 million of shares of its common stock.Other Market Trends Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all traded lower at the time of writing The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.17% amid ‘bullish’ sentiment.Asian markets were trading lower at the open on Wednesday. South Korea's KOSPI, Japan’s Nikkei 225, China’s SSE Composite and Australian stocks were all in the red at the time of writing. For updates and corrections, email newsroom[at]stocktwits[dot]com.
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