Rising Treasury yields to 5% and concerns over AI development pace weigh on the S&P 500, while homebuilders DHI and LEN face significant annual declines.
LEN plunged 43% over the past year, the steepest damage among homebuilders as rate pressure mounted.
DHI fell 23% over the past year as rising rates crushed homebuilder demand and affordability.
NVDA dropped 4% after Anthropic CEO urged AI companies to slow capability development, adding to rate-driven tech weakness.
SPY slid 1% as 10-year Treasury yield hit 5%, reflecting broad equity pressure from rising rates.
WTI crude surged from $84.57 to $97.26 in two weeks, hardening the inflation story and pressuring bonds.
JPM reported a 3.33% card charge-off rate, a contained but watchable credit metric if conditions tighten.
MSFT held up with a 1.24% intraday gain despite broader tech weakness, showing relative resilience.
VIX at 15.84 sits in the normal range, indicating no immediate panic despite the yield spike.
The 10-year US Treasury yield breached 5% for the first time since 2023, driven by heavy federal issuance and expectations of further Fed rate hikes. The S&P 500 fell 1% as investors weighed the impact of rising rates on equity valuations, while tech stocks faced additional pressure following calls to slow AI development.
The yield is rising due to heavy Treasury issuance required to fund a growing federal deficit and market expectations that the Federal Reserve will continue to hike interest rates.