US Stocks Rise as 10-Year Yield Surges to 4.59
A 5-minute read of yesterday's US session and today's catalysts — what to watch before pre-market opens at 21:30 HKT.
TL;DR
The US stock market rose yesterday, with the S&P 500 closing at 7,445.72, up +0.17%. The Dow Jones outperformed, gaining +0.55% to 50,285.66. The Nasdaq 100 also rose, up +0.20% to 29,357.27.
Tech stocks were mixed, with AAPL rising +0.91% and NVDA falling -1.77%. The VIX fell -3.90% to 16.76, indicating decreased market volatility.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,445.72 | +0.17% | |
| Dow Jones | 50,285.66 | +0.55% | |
| Nasdaq 100 | 29,357.27 | +0.20% | |
| Russell 2000 | 2,843.45 | +0.93% | |
| VIX | 16.76 | -3.90% | |
| 10-Year Yield | 4.59 | +0.31% | |
| WTI Crude | 97.94 | -0.33% |
Top large-cap movers
AAPL rose +0.91% to 304.99, while NVDA fell -1.77% to 219.51. AMZN gained +1.30% to 268.46, and META rose +0.38% to 607.38.
Spotlight
| Company | EPS | Revenue | Guidance |
|---|---|---|---|
| AAPL | 1.23 | 100.2B | Q2: 105B - 110B |
AAPL reported strong earnings, with EPS of 1.23 and revenue of 100.2B. The company guided Q2 revenue to 105B - 110B. The results were well-received by investors, with the stock rising +0.91% in the session.
Macro & Fed
- Current policy rate: 5.00% - 5.25%
- 10-Year Yield: 4.59, up +0.31%
- Today's data releases:
- Initial Jobless Claims (21:30 HKT)
- GDP (22:00 HKT)
Geopolitics & Global
- Tensions between the US and China remain high, with trade talks stalled.
- The EU and UK are negotiating a new trade agreement, with a deadline of June 30.
- The Middle East remains volatile, with ongoing conflict in several countries.
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| 23 May | MSFT | Q2 earnings, guidance, and cloud revenue growth |
| 24 May | GOOGL | Q2 earnings, ad revenue growth, and cloud progress |
Stocks Worth Watching
- NVDA: Down -1.77% yesterday, watch for a potential rebound.
- AMZN: Up +1.30% yesterday, watch for continued momentum.
- TSLA: Up +0.14% yesterday, watch for news on production and delivery numbers.
- JPM: Up +0.34% yesterday, watch for news on banking regulations and interest rates.
What Could Break the Tape
A surprise interest rate hike by the Fed could send stocks tumbling, with the S&P 500 potentially falling to 7,200.
A strong earnings season, combined with a dovish Fed, could send stocks soaring, with the S&P 500 potentially rising to 7,800.