Stocks are facing downward pressure as higher Treasury yields weigh on market sentiment. Nvidia is set to report earnings after the bell, with its stock down 6% from last week's high but still up 17.4% over the past three months. The options market anticipates a notable price movement, indicated by an implied volatility of about 6%.
Meanwhile, Amazon shares have fallen 7% from their May peak, although they have gained nearly 27% in the last three months. In Europe, key inflation data is expected, with bond yields reaching levels not seen in over a decade, contributing to declines in European ETFs.
The iShares MSCI Emerging Markets ETF has also dropped 2.4% in the past week, reflecting the adverse effects of inflation and rising rates. In the U.S., the 30-year Treasury yield has reached 5.197%, the highest since July 2007, which has contributed to a 0.6% decline in the S&P 500 and a 0.9% drop in the Nasdaq 100 over the past week.
Upcoming earnings reports from Target and Lowe's are also anticipated, with Target down 4.4% from its April high and Lowe's down 25% from its February peak. Overall, the market is navigating a challenging environment marked by rising yields and inflation concerns