US futures slide and are trading at session lows, as bond yields surge after yesterday’s Treasury announcement, having now erased the entire post buyback-boost move; yields are 4-5bps higher as the curve bear steepens sharply with the 10Y yield now at 4.69%, above where it was before the Treasury's press release yesterday, driven by a surge in Brent above $94 after Trump vowed to unleash an "Economic D-Day" on Iran's economy. As of 8:00am ET, S&P futures are down 0.
2% and Nasdaq futures slide 0.3%. Pre-mkt, Memory / Semis are leading the Tech tape after a stronger APAC Tech session; Mag7 / Software are lagging.
Cyclicals are seeing broad-based strength. Defensives are lagging with HC seeing profit-taking. Momentum continuing to unwind has triggered reversals lower from pre-mkt strength, over the past few sessions.
This appears to be quant / systematic rather than discretionary players with Goldman pointing to the biggest systematic one-day loss since 2023. Retail activity remains muted. USD is mixed, erasing much of its earlier weakness as yields surge.
Commodities are led by Energy as Brent moves towards $95/bbl, base metals outperform precious, with Ags are mixed. US economic data calendar includes weekly jobless claims, the Philadelphia Fed business outlook and leading index. Fed speakers scheduled for the session include, San Francisco Fed President Mary Daly and St.
Louis Fed President Alberto Musalem.In premarket trading Mag 7 stocks are mostly lower (Alphabet -0.3%, Amazon -0.
3%, Apple -0.08%, Meta +0.4%, Microsoft 0.
0%, Nvidia +0.2%, Tesla -0.7%)Cryptocurrency-linked stocks climb as Bitcoin’s rally unleashed the biggest wave of short liquidations in records going back to 2021.
The stocks were also boosted as President Donald Trump met with crypto executives from firms including Coinbase, Payward and Blockchain.com.Advance Auto (AAP) tumbles 15% after the parts provider reported second-quarter sales that fell short of analyst estimates.
Alibaba ADRs (BABA) fall 3% after the Chinese internet giant reported weaker-than-expected revenues for its core domestic e-commerce businessCoty (COTY) falls 14% after the beauty conglomerate refrained from providing full-year guidance, predicting a “transition” period in the current fiscal year.Ethan Allen (ETD) rises 3% after the home furnishings company declared a special cash dividend of $3 a share.Nordson (NDSN) rises 5% after the maker of applicators used to dispense adhesives boosted its adjusted earnings per share guidance for the full year.
Ultragenyx Pharmaceutical (RARE) rises 7% after the drugmaker received accelerated FDA approval for its gene therapy to treat a rare genetic metabolic disorder.Valvoline (VVV) climbs 1% after getting a new bull as Benchmark starts coverage of the operator of quick-oil-change stations with a buy rating, saying the stock is at an attractive entry point for investors.Walmart (WMT) falls 6% as quarterly sales fell short of expectations, a rare miss that’s likely to stoke concern about the leading big-box retailer decelerating alongside a slow-growing US economy.
Webull (BULL) climbs 11% after the digital investment platform reported second-quarter results that beat expectations.Wolfspeed (WOLF) falls 8% after the semiconductor-device company’s fourth-quarter results were seen as disappointing.In other corporate news India’s securities regulator banned a Mauritius-based unit of JPMorgan from its capital markets, the first enforcement action over alleged manipulation of the country’s new closing auction for stock price.
Apple’s camera-equipped AirPods remain on track for 2027, despite a leak from the company indicating that the product might arrive sooner. Starlink has reapplied to India’s space regulator for approval of its Gen 2 satellite constellation, which includes direct-to-device connectivity, ET reports.Under the hood of quiet, low volume trading, there have been some significant thematic rotations.
Perceived AI losers have rallied, high beta losers spiked, while high beta momentum have extended their historic collapse and are now just shy of their July lows. In fact, according to Goldman Prime, systematic funds just suffered their worst drop on Wednesday since 2023 as Nasdaq volatility remains very elevated, despite the apparent surface calm.With so much focus on AI, traders will seek clues from Alibaba results.
Headline first quarter revenue was at 268.95B Yuan, roughly matching consensus. The stock had run hard Into the print, considered among the best-placed Chinese AI developers to turn increasingly capable models into revenue, with Qwen’s near-frontier agentic performance at lower prices than leading US models.
Elsewhere, Brent rose for a fifth straight day, topping $94 a barrel after Trump announced a package of measures intended to smother Iran’s economy, dimming prospects for both an imminent breakthrough in the conflict between the US and Tehran and a normalization of crude flows from the Middle East. Traders are taking stock after Treasury Secretary Scott Bessent announced a surprise increase in long-term bond buybacks to stem a rise in yields that had taken them to a near two-decade high. When it comes to Bessent’s plan to increase buybacks of longer-dated debt, Vital Knowledge founder Adam Crisafulli says “the Treasury action is somewhat minor and insignificant compared to the powerful secular forces pushing yield higher,” and JPMorgan sees credibility risk from the actichion.
And with many warning the plan may be a short-term fix given concerns about large fiscal deficits and oil-driven inflation, that has already been realized as yields rise above where they were before the intervention yesterday!“If there’s a structural reason why bond yields are drifting higher, a bit of short-term intervention buys you a little bit of time, but doesn’t necessarily change the longer-term trajectory,” said Graham Secker, equity strategy head at Pictet Wealth Management.Elevated yields have kept equity prices in check, with the S&P 500 down since Monday after hitting a record high last week.
Chipmakers have been under pressure in recent days, paring this month’s rebound after a volatile July.In politics, a group of Democratic lawmakers are urging Fed Chair Warsh to disclose any conversations he has had with Trump since taking over the central bank in May. The Trump administration is poised to reduce tariffs on automobiles imported from Canada to 15% from 25% as part of a broader deal that would see the US neighbor drop retaliatory trade measures.
Meanwhile, Norway is bracing for more tariffs from the US after talks on trade in Washington.In Europe, the Stoxx 600 was down 0.1% and on track for a seventh day of losses, its longest losing streak of 2026 as energy firms outperformed as Brent crude rose toward $94 a barrel.
Here are the biggest movers Thursday:Novonesis shares climbed as much as 11%, the most since October 2015, after the Danish maker of industrial enzymes beat expectations in the second quarter and upgraded its guidance for the full yearSartorius rose as much as 6%, the most in six weeks, after the stock was upgraded to buy from neutral at UBSSartorius Stedim Biotech climbed as much as 6.7%, the most in more than four months, after the stock was upgraded to buy from neutral at UBS, which cited a “positive setup into 2027”Michelin shares rose as much as 2.5% and Nokian Renkaat gains as much as 6.
4% after JPMorgan upgraded both tire stocks, citing favorable earnings potentialFerrovial shares rose as much 4%, the most since April, after a consortium led by the infrastructure company was selected to deliver Tennessee’s I-24 Choice Lanes project in NashvilleJD Sports declined as much as 16%, the most since November 2024, after sales fell in the second quarter and the sports apparel retailer lowered its full-year profit before tax forecast to account for underlying sales trends and the promotional market backdropSteel stocks SSAB and Norsk Hydro traded lower