Monday’s Trading – Tech Led Stock Slump that Pulled Treasury Yields Off Daily Global Road Higher
Jul 30, 2018
Stocks slumped throughout the morning session with the S&P 500 twice touching its daily bottom just before and after the lunch hour. The index closed off its lows but down 0.6% after stabilizing during afternoon trading. Only 38% of companies within the index finished higher than Friday’s close with strength largely limited to just two sectors. Telecommunications companies rode a 3.0% day for AT&T to close up 2.0% on average while higher crude prices boosted valuations of energy companies. The energy sector rose 0.8% after U.S. WTI added more than 2% on a weaker Dollar and concerns about certain global supply outlets being cut off for now. But it was continued pain in technology names that made the most headlines. The S&P 500’s tech sector fell more than 1% for a third day in a row, matching a trend that has taken the Nasdaq, which fell 1.4% on Monday, to its lowest level since July 5. Treasury yields finished off their highs following the disappointing day for U.S. equities but the curve steepened for the first time in five sessions. The 2-year yield slipped 0.8 bps to close at 2.66%, its low mark for the day. The 10-year yield rose 1.9 bps to 2.97%, relatively modest compared with earlier shifts seen across Europe (U.K. +6.3 bps, Germany +4.2 bps, Spain +5.5 bps).