Tech stocks are winning; Treasury yields fall – .

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Big Tech long bond trading reasserts itself on the Fed – .


Tech stocks rose as investors focused on growth stocks, nervousness over accelerating future US interest rate hikes weighing on global markets.
The benchmark S&P 500 fluctuated, while the tech-rich Nasdaq 100 jumped about 1%, with Apple and Nvidia leading the gains. The Bloomberg Dollar Spot Index rose for a fifth day, the longest winning streak since March 2020. Yields on longer-dated Treasuries fell after rising on Wednesday.

“Technology doing well is a recognition that the growth in GDP and strong economic growth is there,” said Mark Stoeckle, Managing Director of Adams Funds. “This outweighs the inflation concerns. “

Federal Reserve Chairman Jerome Powell acknowledged the risks of inflation and said policymakers have started a discussion on reducing bond purchases. The dot chart of policymakers showed they anticipate two rate hikes by the end of 2023, a faster pace than expected. This marked a turning point in the Fed’s communication to world markets, hitherto ultra-dovish.

While Powell downplayed the risk of an immediate rate hike, some investors interpreted his comments as preparing the markets for a hawkish tilt and possible dip. His remarks followed the Fed’s latest projections, which included upward revisions to its inflation and interest rate outlook.

In shares, CureVac NV plunged as much as 61% in German trade after a study found its COVID-19 vaccine failed to meet its targets. The results, while preliminary, call into question the future of the vaccine as wealthy countries around the world move rapidly to inoculate their populations with already available vaccines.

Copper fell in London to its lowest in two months. The rally in metals has come to a halt in recent weeks and copper has retreated from last month’s record as concerns over cost pressures boosted stimulus expectations that had supported the global recovery would be reduced. Copper producers Freeport-McMoran and Newmont have collapsed.

Here are some key events to watch out for this week:

  • U.S. Treasury Secretary Janet Yellen testifies to a House panel on the federal budget Thursday
  • Tariff decisions come from Switzerland and Norway on Thursday
  • Bank of Japan’s monetary policy decision is Friday

Here are some of the main movements in the markets:

Actions

  • The S&P 500 was little changed at 10:55 a.m. New York time
  • The Nasdaq 100 rose 0.9%
  • The Dow Jones Industrial Average fell 0.5%, falling for the fourth day in a row, the longest losing streak since January 27
  • The Stoxx Europe 600 fell 0.1%, more than any closing loss since June 3
  • MSCI World Index fell 0.4%, more than any closing loss since June 3

Devises

  • Bloomberg Dollar Spot Index rose 0.4%, climbing for fifth consecutive day, longest winning streak since March 23, 2020
  • Euro fell 0.5% to its lowest since April 12
  • The British pound fell 0.3% to US $ 1.3950
  • The Japanese Yen jumped 0.4%, more than any closing gain since June 4

Obligations

  • The yield on 10-year treasury bills fell four basis points to 1.53%
  • German 10-year yield is up six basis points, more than any closing gain since March 3
  • The UK 10-year yield is up six basis points, more than any closing gain since March 12

Merchandise

  • West Texas Intermediate crude fell 0.5% to US $ 71.82 per barrel
  • Gold futures fell 4.3%, the highest in around 10 months



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