US crude hits $96pb, USD extends gains & gold slips below $1900 | MarketTalk: What’s up today? | Swissquote

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The selloff in bonds continues on US government drama. The sell-off in US 10-year papers accelerated yesterday and the 10-year yield spiked to 2.64%. The 2-year yield however, which captures the expectations on Federal Reserve (Fed) actions remain steady a touch above the 5% mark, on slow down worries on all the government and Detroit drama.
Volatility in US bond markets is rising, and the US dollar continues to amass major safe haven demands. Gold slipped below the $1900 per ounce.
In equities, energy and technology stocks helped the S&P500 limit losses yesterday. The energy sector was up as crude oil rallies past $95pb. AI stocks were up as US President Joe Biden said that he will sign an executive action on AI this fall, and Meta announced to introduce AI features in Instagram, Messenger, and WhatsApp.
Earlier this week, Amazon announced to buy a $4 billion stake in Anthropic, similar to Microsoft’s creator of ChatGPT. The deal is a big deal for Amazon.
Zooming out, the S&P500 remains under pressure. Despite an insatiable appetite for AI, the rising yields threaten valuations, the index approaches a critical support zone. In the short run, the risks remain tilted to the downside, as JP Morgan’s Hedged Equity Fund holds tens of thousands of protective puts that will expire on Friday!
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