Monday saw all three major indices close lower, while the memory and storage sector continued its upward momentum. US Treasury yields moved broadly higher, with the 30-year note—often sensitive to geopolitical events—climbing over 4 basis points to 5.311%, its highest level since June 2007. The 10-year yield rose more than 2 basis points to 4.724%, while the 2-year yield, which typically tracks Federal Reserve short-term rate expectations, gained over 1 basis point to 4.182%.
Oil prices advanced as the 60-day deadline for a peace agreement between the US and Iran expired on Monday, with President Trump ruling out any extension. Investors are now awaiting the Fed's meeting minutes due later this week for further clarity on the central bank's latest policy decision and the trajectory of future interest rates. Treasury data showed that holdings of US debt by the UK, Japan, and China all declined in June compared with May. Japan's holdings fell by $26.4 billion to $1.117 trillion, the UK reduced its stake by $8.7 billion to $939.9 billion, and China trimmed $26 billion to $633.4 billion.
US Stocks
At the closing bell, the Dow Jones Industrial Average fell 272.39 points, or 0.51%, to 53,460.02. The S&P 500 dropped 40.39 points, or 0.52%, to 7,745.37. The Nasdaq Composite declined 84.25 points, or 0.32%, to 26,644.91. SK Hynix (SKHY.US) gained 3%, Micron Technology (MU.US) rose 4%, and SanDisk Corp. (SNDK.US) climbed 8.8%. The Nasdaq Golden Dragon China Index closed up 0.37%, with XPeng (XPEV.US) advancing 4% while Miniso (MNSO.US) slipped 8%.
European Markets
Germany's DAX 30 fell 97.04 points, or 0.37%, to 26,335.82. The UK's FTSE 100 declined 30.96 points, or 0.29%, to 10,719.15. France's CAC 40 dropped 57.20 points, or 0.66%, to 8,579.60. The Euro Stoxx 50 slipped 10.24 points, or 0.16%, to 6,529.35. Spain's IBEX 35 shed 183.06 points, or 0.91%, to 19,973.54, while Italy's FTSE MIB edged down 9.61 points, or 0.02%, to 53,574.00.
Asian Markets
Japan's Nikkei 225 gained 0.74%. South Korean markets were closed Monday for a public holiday.
Currency Markets
The US Dollar Index, which measures the greenback against six major currencies, slipped 0.03% to 99.636 at the close of currency trading. The euro traded at $1.1572, up from $1.1566 the previous session. Sterling fetched $1.3538, higher than the prior $1.3533. The dollar bought 159.59 yen, up from 159.38, and 0.8115 Swiss francs, down from 0.8131. It held steady against the Canadian dollar at 1.3877 and weakened to 9.5193 Swedish kronor from 9.5246.
Cryptocurrency
Bitcoin broke through the $64,000 mark, last trading at $64,433.73. Ethereum rose over 1.7% to $1,908.82.
Oil Markets
West Texas Intermediate crude for September delivery surged $2.10, or 2.55%, to settle at $84.50 per barrel. Brent crude for October delivery jumped $2.35, or 2.65%, to close at $90.87 per barrel.
Precious Metals
Spot gold gained 0.93% to $4,416.46 per ounce, while spot silver traded at $65.787.
Macro Highlights
President Trump stated that the US is not currently seeking to extend the memorandum of understanding with Iran, adding that Tehran wants a deal but will not accept terms he deems "necessary." Trump once again floated the idea of declaring the Strait of Hormuz US territory and reiterated US control over the waterway. He also claimed the strait remains open and that oil prices are heading lower.
The ongoing Treasury selloff pushed the 30-year yield to its highest level in nearly two decades, reflecting investor concerns over the nation's ballooning debt, heavy long-dated bond issuance, and inflation that has persistently exceeded the Fed's target over the past five years. The long bond yield rose 3 basis points to 5.29% on Monday, its highest since 2007, edging closer to the 5.44% peak recorded during the early days of the global financial crisis. Rising long-term yields are lifting government borrowing costs, as investors demand higher compensation for the risks of mounting debt and sustained inflation, both of which could keep short-term rates elevated for longer.
"We have been against the view that the long-end selloff would quickly fade, and we maintain that stance," said Anshul Pradhan, head of US rates strategy at Barclays. "A constructive view on long-end Treasuries would require some combination of a positive fiscal surprise, slower AI-related issuance, a shift in Treasury's issuance strategy, or persistently weak economic data."
Company News
Nvidia (NVDA.US) announced a $1.5 billion investment in SB Energy to support the company's growth and its commitment to Ohio. Through the partnership, Nvidia has secured land, power, and shell (LPS) capacity at the PORTS-Pike technology park in Pike County, Ohio, to host Nvidia computing infrastructure, with OpenAI as a customer. SB Energy will build, own, and operate the data center under a 20-year lease to OpenAI. The PORTS-Pike campus project is expected to create tens of thousands of Ohio jobs, fund power infrastructure, and invest hundreds of millions into the community, anchored by an initial $80 million community benefits fund. Nvidia will provide credit support for land, power, and shell construction to secure an initial 4.25 IT-GW, with an option to take the remaining 3.75 IT-GW. Nvidia will be the exclusive AI computing infrastructure provider for PORTS-Pike.
Paramount Skydance (PSKY.US) asked a US judge on Monday to require a dozen states challenging its acquisition of Warner Bros. Discovery (WBD.US) to post a $1.88 billion bond to cover costs from the delayed merger. The $110 billion deal incurs a $7 million daily fee if not completed by September 30. Paramount Skydance argued that with the states' legal challenge not set for trial until March of next year, the company would have already paid $1.3 billion in non-recoverable "time fees" to Warner Bros. Discovery shareholders by the time final legal briefs are submitted.
The AI funding boom continues to drive record issuance in the US investment-grade bond market, with August volumes hitting an all-time high for the month. Corporate borrowing demand is surging as companies pour capital into AI infrastructure. Data shows that August investment-grade issuance has reached $145.2 billion as of Monday, surpassing the previous August record of $136 billion set in 2020. Earlier this year, January, June, and July each set their own monthly records, with three other months ranking as the second-highest on record. This month's issuance has been largely driven by Alphabet's (GOOG.US) $25 billion bond sale, marking the eighth deal of $25 billion or more this year—all from technology companies.
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