US Markets Plunge as VIX Surges 39.68% and Yields Jump 1.32%
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 market experienced a significant downturn, with the S&P 500 dropping -2.64% to 7,383.74 and the Nasdaq 100 plummeting -4.77% to 28,957.60. The VIX surged +39.68% to 21.51, indicating increased market volatility.
Today's focus will be on the 10Y Yield, which jumped +1.32% to 4.54, and the impact of rising yields on the market. Additionally, investors will be watching for any developments in the geopolitical landscape that could further influence market sentiment.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,383.74 | -2.64% | |
| Nasdaq 100 | 28,957.60 | -4.77% | |
| Dow Jones | 50,866.78 | -1.35% | |
| Russell 2000 | 2,833.50 | -3.47% | |
| VIX | 21.51 | +39.68% | |
| 10Y Yield | 4.54 | +1.32% | |
| WTI Crude | 92.54 | +2.21% |
Top large-cap movers
NVDA led the decline, dropping -6.20% to 205.10, followed by TSLA which fell -6.56% to 391.00. In contrast, JPM rose +0.48% to 312.37.
Spotlight
| Key Metrics | Value |
|---|---|
| S&P 500 Close | 7,383.74 |
| VIX Close | 21.51 |
| 10Y Yield | 4.54 |
The spotlight is on the S&P 500, which closed at 7,383.74, and the VIX, which surged to 21.51. The 10Y Yield jumped to 4.54, indicating a significant shift in market sentiment.
Macro & Fed
- Current policy rate: 4.50%-4.75%
- Yield levels: 10Y Yield at 4.54, 2Y Yield at 4.83
- Today's data releases:
- 09:30 HKT: US Trade Balance
- 14:00 HKT: US Factory Orders
Geopolitics & Global
- Ongoing tensions between the US and China continue to impact market sentiment
- European markets are watching the developments in the EU's economic policies
- Global oil prices are influenced by the conflict in the Middle East
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| After Market Close | ORCL | Q4 earnings and revenue growth |
| Before Market Open | KSS | Q1 earnings and same-store sales |
Stocks Worth Watching
- AAPL: Watching for any updates on the iPhone production
- MSFT: Anticipating the release of the new Windows update
- GOOGL: Monitoring the developments in the advertising market
- AMZN: Expecting the announcement of the new Prime Day dates
- GS: Following the news on the banking sector's performance
- JPM: Analyzing the impact of the rising yields on the bank's earnings
What Could Break the Tape
A further increase in the 10Y Yield could lead to a decline in the stock market, as higher yields make borrowing more expensive and reduce consumer spending.
A resolution to the ongoing trade tensions between the US and China could boost market sentiment, leading to a rally in the stock market.