A 5.24% 10-year yield, Meta's software raid and a jobs data day
The 10-year yield hit its highest since 2007 and 70 of 100 names we track fell. Meta's enterprise push hit software, and JOLTS lands at 10 a.m. ET.
Bond yields are now doing the market’s thinking for it. The 10-year Treasury yield closed Monday at 5.24%, its highest since 2007, and 70 of the 100 stocks and funds we track fell. Today brings the first of this week’s labor data, which is where the next move in yields is most likely to come from.
Yields and oil set the tone
The S&P 500 fell 0.77% to 7,683.69 on Monday, the Nasdaq Composite fell 0.92% to 26,820.38 and the Dow lost 347.11 points, or 0.67%, to 51,481.51, per Yahoo Finance. The 10-year yield rose 6 basis points to 5.24%, its highest since 2007, and the 30-year rose to 5.56%, its highest since 2004.
In our feed the S&P 500 fund SPY fell 0.74%, the Nasdaq-100 fund QQQ fell 1.07% and the Dow fund DIA fell 0.67%. The long-bond fund TLT slipped 0.88%, which is what rising yields look like from the bond side.
The trigger was the same one flagged in Monday’s briefing. President Trump rejected Iran’s proposal to reopen the Strait of Hormuz, which kept oil high and fed expectations of another Fed rate increase. CME data put the chance of an October hike above 70%, per Yahoo Finance. Overnight, reports that Trump had offered Iran sanctions relief were denied by both sides, per investingLive, so there is still no deal on the table. Brent crude traded around $107 a barrel in Asian hours.
Gold fell hard with it. Spot gold dropped 3.19% to $4,148.69 an ounce, per Yahoo Finance, and the gold fund GLD fell 3.94% in our feed. A stronger dollar and the prospect of higher rates both work against an asset that pays no interest.
Abroad, Australia’s central bank raised its cash rate by a quarter point to 4.60%, as expected. Japan’s Nikkei 225 fell 1.2% and South Korea’s KOSPI 0.6%, per investingLive.
Meta’s enterprise move hit software
The most connected story of the day started at Meta. The company announced an enterprise platform and hired MongoDB chief executive CJ Desai as its chief enterprise platform officer to run it. Desai left MongoDB immediately, with Dev Ittycheria stepping in as interim chief executive, per Seeking Alpha and GuruFocus.
MongoDB (MDB) fell 18.46% to $334.68, the worst move in our feed. The timing made it worse: the company holds its Investor Day today, and it now does so without a permanent chief executive.
Investors read Meta’s announcement as a threat to existing business software vendors. ServiceNow (NOW) fell 3.07%, Oracle (ORCL) 3.28%, Salesforce (CRM) 2.88% and Snowflake (SNOW) 2.33%. As 24/7 Wall St. noted, Meta gave no pricing, customers or revenue target, so the competitive threat is so far a possibility rather than a fact.
Meta Platforms (META) itself fell 4.79% to $715.62. Coverage from Forbes and Invezz pointed to profit-taking after a month in which the stock had gained more than 25%, plus the wider pressure on AI-related shares.
Chips split, and Nvidia went the other way
Arm Holdings (ARM) fell 8.70% to $283.33 and Qualcomm (QCOM) fell 7.17% to $187.48. Intel (INTC) lost 5.67%, AMD 3.61% and Micron (MU) 2.61%. Coverage from 24/7 Wall St. tied the selling to inflation worries hitting richly valued growth stocks and to profit-taking after big gains this year. We did not find a single company-specific story behind it.
Nvidia (NVDA) rose 1.68% to $228.86. Its board added $150 billion to the company’s share repurchase program, bringing the remaining authorization to $235 billion, which it expects to use through fiscal 2028, per Nvidia’s announcement. It is the largest single increase to a buyback authorization on record, per Yahoo Finance.
That is the day’s clearest disagreement with the headline. “Chips sold off” is true for most of the group, but the largest chip stock rose on news about its own cash, not about demand.
Boeing and the rest of the board
Boeing (BA) fell 6.91% to $184.39 after the Federal Aviation Administration said it would not certify the 737 Max 10 until it assesses a newly found cockpit software issue, per Yahoo Finance and GuruFocus.
Banks gave back Friday’s gains. Wells Fargo (WFC) fell 2.60%, Bank of America (BAC) 2.17%, Goldman Sachs (GS) 2.05% and JPMorgan Chase (JPM) 1.89%. Tesla (TSLA) fell 3.94%.
The gainers were a short list. Palo Alto Networks (PANW) rose 4.63% and CrowdStrike (CRWD) 2.82%, recovering part of Friday’s losses, and Procter & Gamble (PG) gained 1.91%. Exxon Mobil (XOM) rose 1.20% with oil, but the energy fund XLE was up only 0.10%, so high crude did not lift the whole sector.
Our feed has no Tuesday pre-market trades yet. In Monday’s after-hours session it had Meta at $718.10 and Nvidia at $229.42, both close to their closing prices. Early futures readings were mixed: CNBC reported a decline, while MarketWatch described a steady start.
What to watch today
- Carnival and CarMax report results before the open. Carnival’s call is at 10:00 a.m. ET.
- S&P Cotality Case-Shiller home prices at 9:00 a.m. ET.
- JOLTS job openings for August at 10:00 a.m. ET. The previous reading was 7.271 million.
- Conference Board consumer confidence at 10:00 a.m. ET.
- Several Fed officials speak, including New York Fed President John Williams and Governor Christopher Waller.
- MongoDB’s Investor Day in New York.
- Whether the 10-year yield holds above 5.2% and Brent above $107, and any confirmed news on US-Iran talks.
- Later this week: the PCE price index and GDP on Wednesday at 8:30 a.m. ET, Micron after Wednesday’s close, and the September jobs report on Friday at 8:30 a.m. ET.
Not financial advice. iTrading Buddy summarizes publicly available market data and news; every figure above is sourced from the reporting available before the US open on the date shown. Verify anything you act on.