Bond yields of all timeframes are extending their surge
Bond yields aren’t cooling down, with the 30-year note surging to its highest level since October 2023 after the U.S. House passed a bill this morning to lower taxes and increase military spending. Futures on the Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) are lower, as investors weigh the bill’s impact on the country’s deficit. Nasdaq-100 Index (NDX) futures are cautiously higher.
Investors also have the latest unemployment data to unpack. Jobless claims totaled 227,000 last week, slightly below analysts’ estimates of 230,000, pointing to a stable labor market.
Continue reading for more on today’s market, including:
- Keep tabs on these 3 oil stocks amid volatile prices.
- Retail stock tends to outperform during Memorial Day week.
- Plus, solar stock dims; COIN’s sector tailwinds; and Nike resumes Amazon sales.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.1 million call contracts and over 1.2 million put contracts exchanged on Wednesday. The single-session equity put/call ratio slipped to 0.55, while the 21-day moving average stayed at 0.59.
- Sunrun Inc (NASDAQ:RUN) stock is down 41.6% ahead of the open, as the new tax bill — which could end several green-energy subsidies — advanced in Congress. Should these losses hold, RUN will erase its 15.2% year-to-date gain.
- The shares of Coinbase Global Inc (NASDAQ:COIN) are up 3.9% premarket, after Bitcoin (BTC) surged to a fresh record high. The advancement of the GENIUS Act in Senate, which would regulate a subset of cryptocurrencies, is providing tailwinds as well. COIN added 25.6% in the last six months.
- Nike Inc (NYSE:NKE) will resume selling on Amazon.com (AMZN), after stopping direct sales in 2019. NKE is up 0.6% before the bell, and already shed 20.7% so far this year.
- Retail earnings, Fed speeches, and economic data on deck this week.
European, Asian Markets Lower as Caution Prevails
Asian markets fell Thursday, following Wall Street lower as concerns over a new U.S. budget bill and ballooning deficit pressured sentiment. Japan’s Nikkei lost 0.8%, South Korea’s Kospi dropped 1.2%, Hong Kong’s Hang Seng also shed 1.2%, and China’s Shanghai Composite slipped 0.1%.
In Europe, stocks are also lower this afternoon as traders remain cautious. France’s CAC 40 is down 1%, Germany’s DAX has slipped 0.9%, and London’s FTSE 100 is off 0.8%. A hotter-than-expected U.K. inflation reading continues to weigh on sentiment, while investors digest earnings from EasyJet, BT, and British Land ahead of key purchasing managers’ index (PMI) data due later today for both France and the U.K.