⚠️ Surging Bond Yields - The Summit-Era Market Shock

Right as the Trump & Xi summit unfolds, rising bond yields are sending major shockwaves through global financial markets. 🫣

The U.S. 10-year Treasury yield has surged to 5.121%. The yield curve has un-inverted to a positive spread of +0.213% and the 30-year yield has climbed to 5.408%.

Higher risk-free discount rates are fundamentally repricing growth assets and tightening global liquidity conditions.

🔷Growth & Tech Stocks Take the Hardest Hit

Future earnings are valued less now hence stock multiples compress sharply. At the same time, the stronger U.S. yields lift the dollar.

This puts double pressure on cross-border leaders like Alibaba, Tencent, JD.com and Xiaomi as currency depreciation and capital flowing out of emerging markets.

🔷Gold Caught Between Opposing Forces

Non-yielding gold faces headwinds from rising opportunity costs. But geopolitical tensions in the Middle East provide safe-haven demand that partially offsets the drag.

🔷How to Navigate the Volatility

To manage this heightened selling pressure, traders can use indicators including Volume Delta, Volumatic VIDYA, RSI, and Bollinger Bands. These help track institutional distribution and spot where downward momentum may exhaust itself near key support levels.

Please refer to the infographic “Rising Yields Revalue the Market” for the full picture.