Treasury yields are returning | Real Time Headlines

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Yields continue to weigh on stocks
US stocks plunge on wednesday as Treasury bond yields continue to rise. Giant capacitors such as apple, NVIDIA and Yuan A drop of more than 2%. Thursday, Asia-Pacific markets Most follow Wall Street lower. Korean Cospi The index fell about 0.7% as the country reported quarterly GDP growth of 0.1%, narrowly avoiding a technical recession.

Tesla beats profit expectations
Tesla Shares rose 12% in after-hours trading after the company’s third-quarter earnings were released. Exceeded Wall Street expectations. However, Tesla’s revenue increased by 8% year-on-year during the same period, slightly lower than expected. Chief Executive Elon Musk said “vehicle growth” will reach 30% next year due to “lowering vehicle costs” and “the emergence of autonomous driving technology.”

SK hynix profits hit record high
SK hynix reported a Profit hit a record high of KRW 7.03 trillion The third quarter ($5.08 billion) exceeded LSEG’s expectations. The South Korean chipmaker’s quarterly revenue rose 94% year over year, but was still slightly below expectations. SK Hynix is ​​one of the world’s largest memory chip manufacturers and a major supplier to Nvidia.

Apple Intelligence potential collaboration with China
Apple Chief Executive Tim Cook met with Jin Zhuanglong, China’s Minister of Industry and Information Technology, in China on Wednesday, according to a person familiar with the matter. Ministry statement. “The company may seek to strengthen cooperation with local businesses, Launching Apple Intelligence in China“, said Ivan Lam, senior research analyst at Counterpoint Research.

(PRO) European Stock Top Picks
European stocks may be lagging the U.S. so far, but that’s just a generalization and doesn’t apply to all stocks. Bernstein named it The “first choice” for European stock marketsfour of which are from different industries, the research firm believes has the potential to grow by more than 50%.

Yields have been rising over the past month 10-Year Treasury Bond Yields rose about four basis points to 4.25% on Wednesday. During U.S. trading hours, the 10-year Treasury yield hit 4.26%, the highest level since July 26.

Even if the Fed Interest rates cut by 50 basis points at the September meeting and stated that it would further reduce the interest rate for the same amount By the end of the year.

The market appears to have shifted from worries about a weak U.S. economy to worries about the U.S. economy being too strong.

The Federal Reserve’s “beige book“There has been a positive impact on the economy. Most regions in the U.S. “report lower worker turnover and layoffs remain limited,” while “contacts are more optimistic about the long-term outlook,” the report said.

Therefore, it is not inconceivable that a strong economy might prompt the Federal Reserve to slow down or even stop cutting interest rates.

“To me, it’s all about the impact of a rate hike,” said Brent Schutte, chief investment officer at Northwestern Mutual Wealth Management. “The market is re-pricing the possibility of a significant rate cut from the Fed.”

Stocks plunged as yields rebounded. this S&P 500 Index Down 0.92% Dow Jones Industrial Average Down 0.96% – the worst day in more than a month – Nasdaq Index down 1.6%.

But Paul Hickey, co-founder of Bespoke Investing Group, said investors need not panic. “It’s a tough day, but these days happen,” Hickey told CNBC. Wells Fargo sees stocks May rebound in 2025 Despite the near-term uncertainty.

While rising U.S. Treasury yields appear to be holding back stock market gains, like most uninvited visitors, they will likely retreat in time, and if profits remain strong, the market should resume its upward trend.

—CNBC’s Jeff Cox, Lisa Kailai Han, Pia Singh and Brian Evans contributed to this report.