U.S. Stocks Mixed As 10-Year Treasury Yields Break 5% Barrier In 16 Years

U.S. stocks closed with mixed results on Monday.

The yield on the 10-year U.S. Treasury bond briefly exceeded 5% before retreating.

Traders were focused on significant merger news in the energy sector and earnings reports from some major tech companies.

This week, the market’s attention is on GDP and PCE inflation data.

The 10-year Treasury bond yield surpassed 5%, reaching as high as 5.021%, marking a new high in 16 years. Yields on 2-year and 30-year bonds also rose.

After the 10-year U.S. Treasury bond yield broke 5%, both European and American stock markets experienced a broad decline, intensifying concerns that surging borrowing costs could erode economic growth.

U.S. Stocks

Fundamental Analysis:

Technology stocks declined across the board. The Dow Jones U.S. TAMAMA Technology Index fell by 1.75%, with Tesla dropping 3.69%, Apple falling by 1.47%, Amazon declining by 2.52%, Netflix slipping 0.2%, Google decreasing by 1.56%, and Microsoft dropping 1.4%.

Tesla (Beijing) Limited has filed a recall plan with the National Market Supervision Administration in accordance with relevant requirements.

Starting from October 20, 2023, they will recall a total of 4,787 imported Model X electric vehicles produced between October 13, 2021, and September 28, 2023.

Elon Musk mentioned the upcoming introduction of two new social platform tiers for X, one being a lower-priced option with full feature access, and the other a higher-tier that removes ads.

Most popular Chinese concept stocks saw gains, with the Nasdaq China Golden Dragon Index rising by 0.93%.

XPeng Motors gained over 3%, Tencent Music rose by over 2%, and companies like NIO, JD.com, and Pinduoduo saw gains of over 1%.

Bilibili, Baidu, Alibaba, NetEase, and Weibo saw slight increases. Manbang and iQiyi dropped by over 1%, while Vipshop Holdings, Futu Holdings, and Weibo saw marginal declines.

Technical Analysis:   

(S&P 500 Index, 1-day chart)

Market Trends:

  • Dow Jones Industrial Average fell by 190.87 points, a 0.58% decrease, closing at 32,936.41 points.
  • Nasdaq Composite Index (Nasdaq) rose by 34.52 points, a 0.27% increase, closing at 13,018.33 points.
  • S&P 500 Index fell by 7.12 points, a 0.17% decrease, closing at 4,217.04 points.

Hong Kong Stocks

The three major Hong Kong stock indices opened lower, with many tech-related stocks declining.

JD.com Group fell by over 1%, while Meituan, Alibaba, and Baidu Group saw declines. Baidu Group, however, saw a nearly 1% gain.

New energy vehicle companies saw widespread gains, with XPeng Motors rising by over 2%.

Real estate stocks mostly declined, with China Longyuan Group falling by nearly 3%.

Gold-related stocks declined, with Zijin Mining leading with a drop of over 2%.

Some pharmaceutical stocks saw gains, with BeiGene rising by over 6%.

Technical Analysis:  

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) fell by 0.66%, closing at 17,059.33 points.
  • Hang Seng Tech Index (HSTECH) fell by 0.48%, closing at 3,644.39 points.
  • Hang Seng China Enterprises Index (HSCEI) fell by 0.85%, closing at 5,821.65 points.

FTSE China A50 Index

Fundamental Analysis:

The three major A-share indices opened higher, with the market showing some volatility before a slight retreat.

At one point, the Shenzhen Component Index and the ChiNext Index rose by over 1%.

In the sector breakdown, leading gainers included textile and apparel, education, cultural media, household goods, and engineering consulting services.

On the other hand, automobile manufacturers, banks, insurance, and precious metals were among the few sectors to see declines.

In terms of themes, concepts like civil explosives, new urbanization, digital reading, and Chiplet concepts were notable.

Technical Analysis:

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) rose by 0.38%, closing at 2,950.53 points.
  • Shenzhen Component Index (SZCOMP) rose by 0.24%, closing at 9,448.24 points.
  • ChiNext Index (CHINEXT) rose by 0.3%, closing at 1,870.42 points.
  • SSE STAR Market 50 Index (SSE50) rose by 1.08%, closing at 849.19 points.

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