5 Things to Know Before the Stock Market Opens

The 10-year Treasury yield and gold futures are declining, while oil futures are little changed. Bond investments are also subject to interest rate risk such that when interest rates rise, the prices of bonds can decrease, and the investor can lose principal value if the investment is sold prior to maturity. Meanwhile, the 30-year Treasury yield climbed above 5%, the dollar weakened against major currencies, and equities pulled back amid renewed focus on the U.S. budget deficit and rising debt levels1. Though the trigger was new, the underlying concern about fiscal sustainability is not.

Why these overshadowed stocks could be the market’s next big thing

An index is unmanaged, cannot be invested into directly and is not meant to depict an actual investment. Tariff warning, plus a threat to Football stocks impose a 25% tariff on tech giants like Apple for smartphones produced abroad, sent markets into reverse after a steady period of overall gains in recent weeks. Jeremy Siegel, professor emeritus of finance at University of Pennsylvania’s Wharton School of Business and Wisdom Tree chief economist, joins ‘Squawk Box’ to discuss the latest market trends, impact …

Super-long JGB yields extend climb from multi-week lows after weak auction

Looking out further, there are growing expectations that the Fed will be even more relaxed with rate hikes beyond September. But after the better than expected inflation news was released, odds for that big of a hike have fallen to just 37.5%. In other words, Wall Street is now expecting a 62.5% chance that the Fed will raise rates by just a half-point at its next meeting. That’s up from odds of only 32% for the smaller increase a day ago. The market is cheering the fact that the rate of consumer price increases edged lower in July.

Powell warned Wednesday that cracks are starting to form in the labor market, and the sudden jump to a 4.3% unemployment rate is the latest piece of evidence. Traders have long placed their bets on the Federal Reserve cutting rates in September, and Fed Chair Jerome Powell basically confirmed as much Wednesday. European markets reacted swiftly to Mr. Trump’s Friday morning shake-up, with France’s CAC pepperstone forex 40 index losing 1.7%.

At 3% currently, interest payments on federal debt as a percent of U.S. Nearly 15 years ago when the S&P made the same decision, the market reaction was swift, with volatility spiking and equities pulling back. However, last week’s action was hardly a surprise, in our view, as Moody’s had the U.S. on negative watch since November 2023 and its downgrade simply matched the rating of the other two agencies.

Ultimately, people are pulling back spending because they’re struggling to make ends meet after a year of relentless price increases that have far outpaced wage growth.
President Donald Trump announced the extension of the 50% tariffs on Sunday till Jul…
New orders for key U.S.-manufactured capital goods fell in April, suggesting business spending on equipment weakened at the start of the second quarter.
Jeremy Siegel, professor emeritus of finance at University of Pennsylvania’s Wharton School of Business and Wisdom Tree chief economist, discusses why he remains bullish on equities.
This chart shows that strong monthly trailing gains have been followed by solid returns 12 months later.

Yields on 10-year Treasury also experienced some pressure this week, ticking up before ultimately settling at 4.5% by Friday afternoon. Yields and bond prices have an inverse relationship, so as yield increase, bonds decrease, often a sign of diminishing confidence among investors. Tesla’s (TSLA) EU sales sank for a fourth consecutive month in April. The weak sales figures come even though overall battery-electric vehicle (BEV) registrations in the EU jumped 34% in April.

While the information is believed to be accurate, it is not guaranteed and is subject to change without notice. This chart shows the new tax bill passed by the House is expected to add almost $3 trillion to the deficit over the next decade. Chargeup, a driver platform, has joined forces with Mega Corporation Limited and Shivakari Finance to provide a total credit line of Rs 50 crore and facilitate the deployment of 4,000 commercial EVs in India. This collaboration aims to tackle the obstacles in EV financing and improve the financial situation of last-mile drivers by enabling fast financing and predictive asset management.

I called the market bottom in April, urging investors to buy despite widespread pessimism about tariffs and recession fears. My bullish thesis was grounded in strong earnings forecasts and a belief th… Japan’s government held an auction for 40-year notes Wednesday that showed the weakest demand in almost a year, which pushed yields on other Japanese government bonds higher.

Home Depot’s profit fell short as same-store sales faltered, but its revenue topped forecasts and the home improvement chain held to its previous guidance. While Wall Street rejoiced at the U.S.-China tariff truce, small businesses have less to celebrate. As The New York Times (NYT) reported Tuesday (May 27), these enterprises are struggling even after a… The index of consumer confidence index jumped to 98 in May from a revised 85.7 in the prior month, the Conference Board said Tuesday.

Is SPDR S&P Capital Markets ETF (KCE) a Strong ETF Right Now?

Brett Rose, United National Consumer Suppliers CEO, joins ‘The Exchange’ to discuss retail, consumer trends and Memorial Day shopping trends. There’s a looming crunch for U.S. assets that are dependent on foreign investors — who may wait until next year to act, a strategist says. Salesforce wades back into dealmaking, Southwest drops free checked bags, Trump Media to buy Bitcoin, and more news to start your day.

Fed’s Barkin on Path for Economy Amid Tariff Uncertainty

The “crypto winter” that Coinbase CEO Brian Armstrong talked about earlier this year is clearly continuing. Diversification does not guarantee a profit or protect against loss in declining markets. The Weekly Market Update is published every Friday, after market close. The E.U.’s trade chief, Maros Sefcovic, spoke with Commerce Secretary Howard Lutnick and said they “continue to stay in constant contact,” according to a post on X. On Monday, the S&P 500 and Nasdaq Composite fell 0.5% and 1.21%, respectively, marking their third straight day of losses. Jeremy Szafron joins Kitco News as an anchor and producer from Kitco’s Vancouver bureau.

Prices for electronics and toys sold online dropped by the largest amount. And the prices of pet products online surged nearly 13%, hitting a record in the process. Falling energy prices are certainly welcome, but we all know how volatile those prices can be. The ongoing war in Ukraine has made prices particularly sensitive to disruptions. Investors are worried about the fact that bookings, a key measure of future revenue, fell 4% in the quarter. The headline CPI for July rose 8.5% year-over-year and remained flat from June.

Stocks tumbled on Friday after President Trump threatened to impose a fresh round of tariffs, this time aimed at Apple and the European Union. Coinbase (COIN) shares were set to tumble about 5% Wednesday morning after the crypto brokerage firm reported a whopping $1.1 billion loss, worse than expected. Gas fell 7.7%, fuel oil tumbled 11%, natural gas prices were down 3.6% and transportation costs were 0.5% lower. Lower energy costs should boost profits, and consumers may also look to travel more if inflation fears ebb. Investors appear to be betting that housing bull pennant sales, which had started to cool as prices and mortgage rates climbed, may not fall off a cliff after all if the Fed becomes less aggressive. Hopes of a slower pace of Fed tightening helped fuel the market rally Wednesday.

The “crypto winter” that Coinbase CEO Brian Armstrong talked about earlier this year is clearly continuing.
He also previews what Wall Street will be watching tomorrow, with Nvidia’s firs…
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The weak sales figures come even though overall battery-electric vehicle (BEV) registrations in the EU jumped 34% in April.

Wall Street tumbles under the weight of rising Treasury yields and US debt worries

Nvidia is scheduled to release its first-quarter earnings report after markets close on Wednesday, becoming the last of the magnificent seven to report results this year. Despite a sharp market recovery, I remain cautious and expect a prolonged bear market due to rising economic risks. Soaring default rates on student loans, auto loans, and credit cards signal mounting… Scott Chronert, Citi U.S. equity strategist, joins ‘The Exchange’ to discuss the tax budget.

Tesla shares are rising 2% in premarket trading amid the broader market rally on the EU tariff deadline extension. President Donald Trump pushed back accelerated tariffs on EU imports to July 9 on Sunday, two days after an announcement that they’d take effect June 1 sent markets lower ahead of the holiday weekend. “The Commission President said that talks will begin rapidly,” Trump wrote in a message on the Truth Social platform, a reference to European Commission President Ursula von der Leyen.

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For now, there is no other asset class to act as a realistic alternative, in our view. It’s also worth noting that Japan, China and the United Kingdom all have government debt that is a higher percentage of GDP. The inflation report suggests Americans are finally getting some relief after 19 straight months of rising prices. It may also mean that the Fed can ease up on the gas just a bit instead of continuing its historic pace of rate hikes.

By understanding the market movers, investors can better gauge where the momentum is and which stocks might be worth a second look. It’s not just about who’s up or down, but understanding why they’re moving that truly matters. “The equity market is much more focused on the positives and the potential adaptation of businesses to a higher tariff environment and the positives of having more fiscal spending,” he said. Rising debt and the Trump administration’s ongoing tariff policies are creating two different realities for the equity and bond markets, Daco said.