US Markets Decline as Yields Surge and Tech Stocks Falter
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 markets declined yesterday, with the S&P 500 falling -0.53% to 7,569.14 and the Nasdaq 100 dropping -0.27% to 30,578.87. The yield on the 10-year Treasury note surged +0.81% to 4.49, while WTI crude oil prices rose +2.56% to 96.16.
The decline in tech stocks, led by MSFT and NVDA, weighed on the market. However, META bucked the trend, rising +3.96% after a strong earnings report.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,569.14 | -0.53% | |
| Dow Jones | 50,904.38 | -0.79% | |
| Nasdaq 100 | 30,578.87 | -0.27% | |
| Russell 2000 | 2,897.00 | -1.19% | |
| VIX | 16.04 | +1.71% | |
| 10Y Yield | 4.49 | +0.81% | |
| WTI Crude | 96.16 | +2.56% |
Top large-cap movers
META rose +3.96% after a strong earnings report, while MSFT and NVDA fell -3.16% and -3.33%, respectively.
Spotlight
| Key Metrics | Value |
|---|---|
| META Earnings per Share (EPS) | 3.45 |
| META Revenue | 34.6B |
| META Net Income | 7.3B |
META reported strong earnings, with EPS of 3.45 and revenue of 34.6B. The company's net income rose to 7.3B, beating analyst expectations.
Macro & Fed
- Current policy rate: 5.25%-5.50%
- Yield levels: 10Y Yield at 4.49, 2Y Yield at 5.12
- Today's data releases:
- Non-Farm Payrolls (21:30 HKT)
- Unemployment Rate (21:30 HKT)
- ISM Manufacturing Index (22:00 HKT)
Geopolitics & Global
- Ongoing tensions between the US and China over trade and security
- Rising concerns about global economic growth and inflation
- European Central Bank expected to raise interest rates in the coming months
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| 21:00 HKT | AAPL | Q2 earnings and revenue guidance |
| 22:00 HKT | GOOGL | Q2 earnings and advertising revenue growth |
| 23:00 HKT | AMZN | Q2 earnings and cloud computing revenue growth |
Stocks Worth Watching
- NVDA: Expected to report Q2 earnings and provide guidance on the gaming and AI markets
- TSLA: Announced a new electric vehicle model and expansion plans in China
- JPM: Reported strong Q2 earnings and revenue growth in investment banking
- GS: Expected to report Q2 earnings and provide guidance on the financial services sector
- AVGO: Announced a new semiconductor product line and expansion plans in Asia
What Could Break the Tape
A sharp decline in tech stocks, led by NVDA and MSFT, could weigh on the market and lead to a broader sell-off.
A strong earnings report from AAPL and a positive surprise in the non-farm payrolls data could boost investor sentiment and drive the market higher.