US stock futures moved lower ahead of today’s open, with the Nasdaq 100 dropping by 1.2%, the S&P 500 by 0.5%, and the Dow by 0.1%.
This selloff came as the 10-year Treasury yield climbed to 4.74% and the 30-year yield reached 5.2% – its highest level since June 2007.
Higher Yields Hit Tech Stocks
The sharp move in bonds had the greatest impact on growth and tech stocks. Nvidia dropped by about 2% in premarket trading, while Micron Technology fell by about 4%.
This weakness followed a softer session yesterday, when the Dow declined by 272 points, and both the S&P 500 and Nasdaq also closed lower. Rising oil prices also added to the pressure, with WTI crude oil currently trading at around $84.5 per barrel.
Home Depot stock was a notable exception, gaining roughly 1.5%, but that’s because it reported better-than-expected fiscal second-quarter results while maintaining its full-year outlook.
Crypto Markets Remain Relatively Resilient
In an interesting change of pace, crypto has been steadier throughout the past 24 hours. The total market cap is at around $2.28 trillion, up about 0.5% over the day.
Bitcoin remains above $64K at the time of writing, up roughly 1% during the period, despite the pressured equities and the rise in Treasury yields.
This suggests that the crypto market has managed to absorb the latest macro pressure better, which hasn’t been the case for a while – when risk-on assets decline, the drop in cryptocurrencies is usually more pronounced.
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