Nasdaq hits three-month high before retreating amid rising yields

U.S. stock markets experienced a volatile session characterized by significant swings in major indices. The Nasdaq reached a three-month high, touching 31,094.75 points, before retreating approximately 1% to settle near 30,764.75. This movement followed a period of rapid gains that some analysts described as a “violent” rise.

The decline in technology stocks coincided with rising Treasury yields, as the ten-year yield reached a 19-year high of 5.11%. Market sentiment was further influenced by commentary suggesting that further Federal Reserve policy adjustments may be necessary, with the implied probability of an October rate increase rising to 69%.

While large-cap indices reached highs, concerns were raised regarding the Russell 2000, which fell 1.42% and remains in a downward channel, signaling a potential divergence between large and small-cap stocks. The S&P 500 also saw a decline of 0.70%, settling near the 7,700 level.