US Treasury Yields Hit Record Highs... Futures Market Shows Resilient Rebound

▲ US, Federal Reserve (Fed), Dollar (USD), Interest Rate / AI Generated Image

The US 10-year Treasury yield surpassed 5.3%, reaching its highest level in 24 years. Even the 30-year yield broke multi-decade highs. Nevertheless, the New York stock market's overnight futures market showed a resilient rebound ahead of the employment report release, creating a tense tug-of-war.

According to US investment media StockTwits on October 1 (local time), the Dow Jones Industrial Average, S&P 500, and Nasdaq futures indices all rose in overnight trading despite the sharp rise in long-term Treasury yields. The US 10-year Treasury yield exceeded 5.3%, soaring to its highest level in 24 years since 2002. The 30-year Treasury yield also climbed to 5.652%, setting a new multi-decade high.

As the surge in long-term interest rates heightened tension across the financial markets, the level of warnings from experts also increased. Economist Peter Schiff pointed out the structural impact that soaring long-term Treasury yields would have on the real economy and asset markets, highlighting the risks associated with bond sell-offs. Market participants are closely watching the impact of key employment indicators, such as the US initial jobless claims and non-farm payrolls report to be released this week, on the Federal Reserve's (Fed) future interest rate policy path.

For individual stocks, buying and selling diverged based on earnings announcements and industry issues. Micron Technology Inc. (MU) emerged as a key stock of interest in the market, driven by expectations for its artificial intelligence (AI) memory competitiveness and strong investor sentiment among individual investors after its strong earnings announcement. NIKE Inc. (NKE) saw a surge in mentions within the StockTwits community ahead of its Q1 earnings release, signaling volatility.

Differentiated movements were also observed in the biotech and energy sectors. ImmunityBio Inc. (IBRX), a clinical-stage biopharmaceutical company, continued active trading after recording double-digit gains despite the overall sluggishness in the biotech sector in September. Constellation Energy Corporation (CEG), a leading nuclear power stock, also attracted significant investor attention, aligning with the narrative of a massive surge in electricity demand driven by AI data centers.

[Article Key Summary]

-The 10-year Treasury yield surpassed 5.3%, reaching its highest level since 2002, but futures indices rebounded.

-With the 30-year yield soaring to 5.652%, experts like Peter Schiff warned of bond-driven tightening risks.

-Ahead of the employment report, attention focused on Micron (MU), Nike (NKE), ImmunityBio (IBRX), and Constellation (CEG).

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*