On Monday, the Nasdaq Composite achieved a new high, marking an 18% increase for the year, while the S&P 500 is slightly down from its August peak. The 2-year Treasury yield rose to 4.8%, and the 10-year yield reached approximately 5.3%, the highest since 2002.
In contrast, the Invesco S&P 500 Equal Weight ETF is down 5.5% from its high, indicating a divergence in performance between large tech stocks and broader market segments. Notably, defense stocks are under pressure, with Lockheed Martin down 26% from its high and Huntington Ingalls down 42%.
This decline coincides with a shift towards lower-cost defense solutions, as highlighted by President Trump's visit to Anduril, a tech company focused on autonomous systems. Meanwhile, CrowdStrike's shares surged 173% over six months, reflecting strong market interest. The housing sector also shows weakness, with major builders like PulteGroup and D.R.
Horton experiencing significant declines from their recent highs. Overall, the market is witnessing a complex interplay of rising yields, sector-specific challenges, and notable stock performances that investors should monitor closely