US stock futures came under pressure ahead of the open, with the Nasdaq 100 dropping 1.2%, the S&P 500 falling 0.5% and the Dow slipping 0.1%. The catalyst was a sharp move in government bonds: the 10-year Treasury yield climbed to 4.74%, while the 30-year yield hit 5.2%, its highest level since June 2007.
Higher yields and oil prices hit growth and tech stocks. Nvidia lost about 2% in premarket trading and Micron Technology dropped around 4%. Home Depot was a notable exception, gaining about 1.5% after reporting better-than-expected fiscal second-quarter results. WTI crude oil traded near $84.5 per barrel, adding to inflation and tightening concerns.
Crypto markets showed relative resilience. The total cryptocurrency market capitalization stood at about $2.28 trillion, up 0.5% over 24 hours. Bitcoin remained above $64,000, roughly 1% higher, even as stocks and bonds moved. It traded in a narrow range between $63,500 and $65,000, with immediate support at $63,800 and resistance at $65,200 and $66,000. Analysts attributed the stability to spot buying and reduced selling pressure from long-term holders.
A market strategist said: "Bitcoin is at a crossroads. If yields keep climbing, we could see a test of lower support. But if inflation concerns dominate, Bitcoin might benefit." Traders are watching Treasury auctions and oil inventory data for the next directional cue.
