Declines on Wall Street; The 30-year bond yield jumped to about 5.1%

16:55

Technology stocks lose ground: Intel decreases by 6%, Advance Micro Devices losing 3%, Micron Technology decreases by about 5%. Nvidia Down about 4%, Cerberas, which jumped 68% yesterday, the first day it started trading on Nasdaq, is losing 10%.

16:30

Wall Street opened with sharp declines: S&P 500 falls about 1%, Nasdaq loses about 1.4%, Dow Jones loses about 0.8%. The sharp declines come against the background of the sharp rise in bond yields, and from the tension surrounding the question marks in the renewal of the war between Iran and the US.

The fact that the summit between US President Donald Trump and Chinese President Xi Jinping ended and no significant conclusions came out of it also worries investors. The two agreed that the Straits of Hormuz must remain open, according to an American report shared by a White House official.

16:00

Wall Street futures were colored red, signaling a negative opening. The S&P 500 is down about 1.25%, the Nasdaq is down about 1.8%, the Dow Jones is losing about 0.9%, this after last night’s trading closed at record highs. The Nasdaq rose by 0.8%, the S&P 500 by 0.7%, the Dow Jones rose by a similar rate and traded again at over 50,000 points.

The main reason for the declines is a sharp increase in bond yields that weighs on estimates. The 30-year bond yield jumped 8.6 basis points to about 5.1% – the highest level since May 2025, and is approaching the highs since October 2023.

The 10-year government bond yield – the main benchmark for the American credit market – rose by 7 basis points to 4.55%.

The jump in yields follows the announcement of the appointment of new Fed Chair Kevin Warsh, who was confirmed by the Senate on Wednesday, as he faces a complicated inflation picture.

According to Reuters, investors are bracing for long-term high returns, and are skeptical of Warsh’s ability to curb inflation fueled by soaring oil prices following the protracted conflict in the Middle East.

Added to the challenges of inflation is the fiscal pressure: the 97 billion dollars paid in April as interest on the government debt was the second largest expense after the National Insurance.

Within minutes since it began trading, the stock of the artificial intelligence chip company Cerebras jumped by about 100% on its first day of trading last night on the Nasdaq. The company was priced in the IPO at $185 per share and jumped to about $400 before withdrawing and closing at $311, an increase of 70%.

The company sold 30 million shares in an IPO late Wednesday, raising $5.55 billion at a valuation of $56 billion, the largest IPO of a US technology company this year and the largest since Uber’s IPO in 2019. If the underwriters exercise their option to purchase an additional 4.5 million shares, the total raised could reach about $6.38 billion.

Today, with the declines in contracts, the stock is trading under pressure – one of the triggers for a slight correction after a successful Sunday.

Another highlight yesterday was Nvidia’s stock, which rose to a record high and is already trading at about 5.7 trillion dollars. Yesterday, the US approved about 10 Chinese companies to purchase the company’s chips. The chip company’s market value jumped more than $900 billion in seven days.

Cisco Systems’ stock also jumped after the company provided a stronger than expected revenue forecast alongside a significant streamlining move that includes cutting thousands of employees, as part of a deep preparation for the age of artificial intelligence.

Ondes Holdings shares also jumped following the quarterly report. The company shows exponential growth following the acquisitions of several Israeli companies.

Against the background of continued geopolitical uncertainty, the price of oil is trading around $100 per barrel. In this context, the Wall Street Journal also mentioned the summit meeting between US President Trump and Chinese President Xi, but added that the economists of the Dutch bank ING noted that “the market may be placing too much hope that the talks between the US and China will yield positive results regarding Iran.”

At the same time, the price of gold hovers around $4,500, in light of expectations that interest rates in the US will remain high for a longer time, due to the inflation data there.

Bitcoin is trading at $80,409, a slight increase of about 0.83%. Bitcoin is down about 7% since the beginning of the year, amid the feeling that the glow surrounding digital currencies is shifting towards AI stocks.