As benchmark oil prices retreated from their highest levels in weeks, long-term Treasury yields declined, at least temporarily easing concerns over further inflation.
Earlier reports indicated that the U.S. and Iran remain actively engaged in diplomatic efforts to advance negotiations toward an agreement. WTI crude briefly fell from above 102 to around 96, but later recovered to near 100. Iran stated that any talks must first address its previously outlined seven conditions.
The rally caused 10-year to 30-year Treasury yields to decline by 3 to 4 basis points, with the 10-year yield dropping to 5.11%. As U.S. equities stabilized further, short-term Treasury yields saw smaller declines or even slight increases. On Monday, bond prices across all maturities fell as tech stocks rebounded from last week’s losses—after the prior sell-off had driven demand for risk-averse assets including bonds.
On Tuesday, long-term bond yields accelerated lower following a steep drop in oil prices after reaching near two-month highs. Although oil has been the primary driver of U.S. Treasury yields for much of this year, bond investors largely ignored it last week amid selling pressure on AI-related stocks. Semiconductor shares stabilized after an early morning dip on Tuesday.
After-hours trading saw strong gains in stocks tied to artificial intelligence, following Super Micro Computer Inc.’s robust preliminary earnings report, which boosted market confidence in future spending on the technology.
Dell Technologies Inc. and Hewlett Packard Enterprise Co., both competitors to Super Micro in computer equipment, rose more than 5%, while “new cloud” companies CoreWeave Inc. and Nebius Group climbed over 4%. The VanEck Semiconductor ETF gained 2.2%, and the Invesco QQQ Trust ETF, tracking the Nasdaq 100 index, surged 0.9% at one point.
Super Micro projected quarterly sales between $18.5 billion and $19.5 billion for the period ending September 30. According to Bloomberg data, analysts’ average revenue forecast stood at approximately $15 billion.
Plugin Case Showcase
Gold: Prices continue to consolidate in an expanding pattern; today we focus on signals near 4100 indicating liquidity absorption. If prices break higher toward 4135 first, consider a short-term buy on pullback, with initial targets at 4145/4155.
(Gold 15-minute chart)
Nasdaq: Price approaches the key resistance level near 29,900. A successful breakout and hold could signal a reversal from recent bearish momentum, forming a small double bottom. We recommend staying engaged and buying on pullbacks following a confirmed bullish breakout.
(Nasdaq 15-minute chart)
Crude Oil: Yesterday our plugin clearly signaled to look for a bounce after liquidation in the yellow zone. Overnight price action perfectly matched our prediction. Today, prices may consolidate within the 98–100/101 range; we suggest caution. Hold onto yesterday’s long positions and lock in profits if needed.
(Crude Oil 15-minute chart)
