Pre-Market Pulse 22nd August – Tech drags market higher despite rising bond yields

Overnight – Tech drags market higher despite rising bond yields

Equities were mixed overnight as weakness in consumer staples and energy offset an Nvidia-led rebound in tech despite a jump in Treasury yields to 16-year highs ahead of potential clues on monetary policy later this week.

The DOW fell 0.1%, 37 points, Nasdaq rose 1.6%, and the S&P500 rose 0.7%. Tech stocks were led higher by a more than 8% surge in NVIDIA, ahead of the chipmaker’s quarterly results due Wednesday. Nvidia has been riding the wave of AI optimism since surprising Wall Street with blowout guidance in the fiscal quarter. Treasury yields started the week on the front foot, with the US10Y surging to a more than 16-year high as investors anticipate that Federal Reserve chairman Jerome Powell may hint that further work is likely needed to slow inflation following recent signs of healthy economic growth. Tesla rose more than 7% as investors bought a recent dip in the electric vehicle maker on the heels of fresh positive remarks from Wall Street.