A burst of Big Tech strength kept the risk-on mood humming. Rallies in Nvidia and Microsoft pulled the S&P 500 up to striking distance of its record close. Nasdaq 100 futures added 0.2% after that index notched a fresh closing high, and S&P 500 futures inched higher in early Asia.
Across the region, equity-index futures for Japan, South Korea, Australia, and Taiwan signaled a positive start. That comes even as global yields sit at multi-decade highs, a backdrop the stock market has mostly waved off in favor of earnings momentum, sturdy consumer demand, and a wave of AI-driven investment.
With longer-dated US Treasury yields moving higher, sovereign debt from Australia and New Zealand fell during early Tuesday dealings. On Monday, the euro slid to its weakest level since May as political turmoil in Europe intensified and fiscal worries lingered, while a dollar index finished slightly up.
Oil stayed on the back foot. US crude held its two-session decline and traded below $90 a barrel, and Brent closed near $100. In energy policy, US President Donald Trump is preparing to relax limits that restrict the use of a tax exempt diesel variant, aiming to trim costs for an essential fuel.
Overnight moves in Asia often set the tone before US markets even open. Market Briefs covers global sessions free every weekday.
Not everything under the hood looks great. Market breadth has thinned, with the share of stocks above their 10, 50, and 200 day moving averages dropping to levels last seen in March. "Relative equity-market calm amid the bond market's 'perfect storm' is understandable, given accelerating economic growth and the AI boom's rate insensitivity," said Lisa Shalett at Morgan Stanley Wealth Management.
On rates, Earl Davis, who leads fixed income and money markets at BMO Global Asset Management, said on Bloomberg Surveillance that 30 year Treasury yields are poised to push through 6% and could do so this month. And Craig Johnson, Piper Sandler's chief market technician, cautioned, "We need to see interest rates and oil to come down, but at this point of time it's not happening and the market internals are getting worse," calling that a headwind for stocks.
Right now, tech leadership and AI spending are overpowering the drag from higher yields and pricey energy. If breadth keeps narrowing and long yields press higher, leadership could stay concentrated, and day to day swings may bite more outside the mega caps. Keep an eye on oil, the dollar, and those 30 year yields to see where pressure shows up next in your holdings.
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