Tech stocks boosted by Micron but Treasury rout hangs over markets
TLT•Asian technology stocks rose after Micron reported strong demand for AI memory chips, while Treasury yields climbed to multi-year highs. The U.S. 10-year yield rose 87 basis points in the July-September quarter, its biggest quarterly increase since 1994.
1. Tech shares advance
Asian technology stocks rose after Micron reported strong demand for AI memory chips, with financial commitments under long-term supply agreements at $32 billion, up from $22 billion in June. Japan’s Nikkei gained more than 3%, South Korea’s KOSPI rose 1.7% and Taiwan’s benchmark was up 0.8%. Nasdaq futures advanced 0.7%, while S&P 500 futures gained 0.4%.
2. Treasury yields surge
The U.S. 10-year Treasury yield reached 5.306%, its highest level since mid-June 2007, and rose 87 basis points in the July-September quarter, the biggest quarterly rise since 1994. Investors were watching whether yields would stay above 5%, while some contemplated the possibility of a move above 6%. Yields in Japan, Germany, France and Britain also reached multi-year highs.
3. Rate hike bets ease
Softer-than-expected U.S. inflation data reduced traders’ odds of a Federal Reserve rate hike this month to 38% from 50% a day earlier. New York Fed President John Williams said he saw “no urgency” for further action. Elevated energy costs continued to stoke inflation concerns, with Brent crude futures up 42% in the July-September quarter.
