Tech Slides as Yields Hit 24-Year Highs, Oil Surges on Middle East Attacks
Market & SentimentThe S&P 500 fell 0.42% and the Nasdaq 100 dropped 1.34%, while the Dow edged up 0.12% as investors rotated into defensives. Breadth was positive with 336 advancers, but only 32.3% of stocks trade above their 50-day average, and new highs barely outnumbered lows. The 10-year yield at 5.22% and Brent crude's jump on Middle East shipping attacks kept risk appetite in check.
Sectors & StocksEnergy led with a 2.92% gain as oil spiked on Hormuz shipping attacks, lifting Marathon Petroleum 4.77% and Valero 4.65%. Consumer staples rose 2.16%, helped by Philip Morris' 4.05% advance. Information technology was the worst performer, down 1.83%, with optics names hit hard: Coherent fell 9.63%, Astera Labs 9.21%, Corning 6.38% and Lumentum 5.62%. Accenture bucked the tech weakness, gaining 5.96%.
Rates, FX & CryptoTreasury yields declined across the curve, with the 10-year down 6bp to 5.22% and the 30-year down 7bp to 5.60%, though both remain near 24-year highs. A Bessent adviser said yields are 'really, really high' but could fall soon. The dollar was mixed: USD/CNY slipped 0.03%, EUR/USD rose 0.08%. Bitcoin fell 1.84% to $81,736 and Ether dropped 3.85% to $2,475.
Earnings & AnnouncementsPepsiCo reported Q3 revenue of $25.27 billion with core EPS up just 2%, as weight-loss drugs and inflation pressured sales. Samsung forecast record Q3 operating profit above 100 trillion won on AI demand, but Micron shares fell. Apple named Steve Smith as its new M&A chief, replacing Adrian Perica. Merck won FDA approval for WELIREG plus LENVIMA in kidney cancer, while Halozyme won a Dutch court order blocking Merck's Keytruda SC in eight European markets. No FinDog view changes today.
- BlackRock and Delta Air Lines earnings before the open
- 30-year Treasury auction results and yield reaction
- Oil price moves amid Middle East shipping attacks
- Any further AI revenue updates from OpenAI or partners
- Oil prices rose on supply concerns after attacks on shipping in the Middle East, lifting energy stocks and adding to inflation worries for the broader market.Reuters10-08 01:25 UTC
- David Zervos said yields are 'really, really high' but could come down, after the 10-year and 30-year hit 24-year highs, offering a potential tailwind for equities.CNBC10-08 19:38 UTC
- Yemen's Houthis said they attacked Riyadh airport with a ballistic missile, escalating Middle East tensions and raising risks for oil supply and global markets.Reuters10-08 03:03 UTC
- Samsung expects operating profit to top 100 trillion won for the first time, signaling strong AI-driven demand for memory chips, though Micron shares fell on the news.
- OpenAI's annualized revenue reached nearly $50 billion in September, below earlier estimates, raising questions about AI spending and weighing on Microsoft, Oracle and Nvidia.
- The Labor Department suspended Microsoft, Adobe and other tech firms from an immigration program, potentially complicating their access to skilled foreign workers.
- Apple appointed veteran Steve Smith to lead mergers and acquisitions, replacing Adrian Perica who held the role for over a decade, as the company seeks new growth areas.
- Merck received FDA approval for WELIREG plus LENVIMA for adults with advanced renal cell carcinoma after prior PD-1/PD-L1 therapy, expanding its oncology portfolio.
- A Dutch court blocked Merck's Keytruda SC in eight European markets, strengthening Halozyme's position in their patent dispute and potentially delaying Merck's subcutaneous formulation.
- Some options traders are betting the Treasury sell-off is nearing an end after a strong 10-year auction, a potential signal for a pause in the yield surge.CNBC10-08 13:29 UTC
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