Wall Street’s tech-heavy indexes faced renewed pressure Tuesday as long-term Treasury yields surged, while Bitcoin remained comparatively stable around $64,000.
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.
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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.
