Stocks still in bonds' grip
SPY•U.S. and global stocks fell for a second day on Tuesday as elevated bond yields and jitters over U.S. inflation and quarter-end volatility weighed on sentiment. The U.S. 30-year yield reached 5.62%, its highest since 2002, while oil prices fell 2.5%.
1. Stocks and bonds
Japan's stock market fell 0.6%, Europe's was flat and the UK slipped 0.5%. In the United States, the Nasdaq fell 0.1%, the S&P 500 lost 0.2% and the Dow dropped 0.3%. The U.S. 30-year Treasury yield stood at 5.62%, its highest since 2002, while the entire U.S. yield curve was within five basis points of trading above 5%.
2. Market moves
Seven S&P 500 sectors fell and four rose. Energy declined 0.9%, utilities gained 1.1% and U.S. chip shares rose 1.3%. Apple fell 2.7%, the Dow's biggest loser, while Carnival gained 13%, the S&P 500's biggest gainer. The dollar rose 0.3% to its strongest level in two months, oil fell 2.5% and gold gained 1%.
3. AI financing concerns
Bonds issued to fund data center construction came under pressure, raising questions about whether this signals further turbulence or a buying opportunity. Anthropic's revenue grew 12-fold last year, while operating losses exceeded $8 billion and net losses topped $40 billion, prospectus documents showed. The prospective IPO is targeting a valuation above $2 trillion.
