Carlos Figueroa Vaca
ᴛʀᴇᴀꜱᴜʀʏ ʏɪᴇʟᴅꜱ ᴄʟɪᴍʙ, ꜱᴇɴᴅɪɴɢ ꜰʀᴇꜱʜ ꜱʜᴏᴄᴋᴡᴀᴠᴇꜱ ᴛʜʀᴏᴜɢʜ ᴍᴀʀᴋᴇᴛꜱ The $SPX500 declined on Tuesday, extending its pullback from last week's historic peak as surging Treasury yields and persistent geopolitical uncertainty continued to pressure equity valuations. US Treasury yields delivered another shock to equity markets on Tuesday, with the 30-year bond surging as much as seven basis points to reach 5.20%, a level last seen on the eve of the 2007 global financial crisis. The 10-year yield jumped as much as 10 basis points to touch 4.69%, marking its highest reading since early 2025. The $NSDQ100 underperformed again on Tuesday, marking the second consecutive session of declines for the technology-heavy index. Memory chip manufacturers continued to face pressure following Monday's concerning commentary about manufacturing capacity constraints, with $STX.US (Seagate Technology PLC) 's CEO stating that new factories would take too long to build, stoking persistent fears that the memory chip industry lacks sufficient capacity to meet explosive AI demand. The $DJ30 provided relative strength again on Tuesday, reflecting continued resilience in industrial, financial, and traditional economy sectors. Tuesday's robust ADP employment report, showing 42,250 jobs added over the previous four weeks, reinforced the Federal Reserve's ability to keep policy tight without significant employment concerns, with markets currently pricing in a 50% probability of at least one rate increase before year-end. -Carlos $NVDA (NVIDIA Corporation)
Not investment advice. The author may have financial interests in the mentioned instruments.