Stocks slid for a third straight session Tuesday as surging Treasury yields spooked investors ahead of Nvidia’s earnings report. The 30-year yield briefly topped 5.19%, its highest level in nearly 19 years. When bonds sell off like this, equities feel the gravity.
Market Snapshot
| Index | Close | Change |
|---|---|---|
| S&P 500 | 7,353.61 | -0.67% |
| Nasdaq | 25,870.71 | -0.84% |
| Dow Jones | 49,363.88 | -0.65% |
| Bitcoin | $76,565 | -0.6% |
| Ethereum | $2,116 | flat |
What Moved Markets
Treasury yields are the story. The 10-year hit 4.69%, the 20-year crossed 5.19%, and the 30-year touched 5.17%. All three set 52-week highs. These are levels we haven’t seen in nearly two decades for the long end. When borrowing costs rise this fast, it reprices everything: mortgages, corporate debt, and especially stock valuations built on cheap money.
Homebuilders got crushed. The iShares U.S. Home Construction ETF dropped over 1%. D.R. Horton and Lennar both fell, and Toll Brothers lost about 2%. Higher yields mean higher mortgage rates, which means fewer buyers. Simple math, painful results.
Chip stocks took a breather. The Philadelphia Semiconductor Index has tumbled 6.4% over the past two sessions after a monster 60% run this year. Micron bounced 4% on Tuesday, trying to snap a three-day losing streak, but the sector is clearly nervous ahead of Nvidia’s report.
One bright spot: Agilysys. The hospitality tech company popped 16% after beating on both earnings (63 cents vs. estimates) and revenue ($82.9M vs. $81.6M expected), with solid full-year guidance of $365M to $370M.
Worth Watching
Nvidia earnings (Wednesday after close). This is the week’s main event. Wall Street expects around $78 billion in revenue and $1.76 EPS. Big Tech’s $725 billion in planned AI capex is the tailwind. If Nvidia delivers, chip stocks rally. If it disappoints, the 6% selloff could get a lot worse.
Bond market pressure. Three straight days of rising yields is not noise. Watch whether the 10-year breaks above 4.70% and holds there. That’s the level where equity valuations start looking stretched even by bull-market standards.
Crypto weakness. Bitcoin at $76.5K is its lowest since May 1. Risk assets are pulling back across the board, and crypto tends to amplify that move. If yields keep climbing, expect more downside.
Bottom Line
The bond market is doing the talking right now, and it’s not saying anything stocks want to hear. Three days of losses, yields at multi-decade highs, and a make-or-break Nvidia print on deck. This isn’t panic territory, but it’s definitely not the time to be adding risk without a plan.
