Global Markets Under Pressure as Bond Yields Surge and Tech Stocks Sell Off

Global financial markets are teetering on the edge of deep turbulence, driven by a relentless surge in bond yields and a sharp sell-off in technology equities. As geopolitical risks drive oil prices higher, reviving inflationary concerns, investors are confronting the reality that central banks will maintain tight monetary policy paths for longer.

Bond Market Storm and the Fed's Grip

■The US 10-year Treasury yield balanced at 4.69% today after nearing its highest level since January 2025 at 4.75% yesterday.

■The US 30-year yield retreated to 5.27% after testing 5.34%, its highest level since 2007.

■In Europe, Germany's 10-year yield climbed to 3.27%, its highest since 2011, while France's 30-year yield reached 4.91%, a peak last seen in 2008.

Geopolitical Friction in the Strait of Hormuz and $91 Oil

Escalating tensions between the US and Iran pose a direct threat to global energy supply security. Brent crude rose 0.6% to $91.6, keeping inflationary expectations alive. The UAE Ministry of Foreign Affairs suspending all commercial and financial activities with Iran further exacerbates vulnerabilities to supply shocks.

Silicon Valley Sell-off: Chip Giants and the Meta Blow

■Semiconductor giant Nvidia lost 2.3%, Micron Technology plummeted 7%, and Broadcom fell 3.2%.

■The Philadelphia Semiconductor Index closed down 5%, while Meta shares shed 4.5% amid a lawsuit regarding children's mental health.

■In Asia, trading was briefly halted in South Korea, where SK Hynix fell 9.2% and Samsung Electronics dropped 7.8%.

We are observing a market structure where algorithmic high-frequency trading (HFT) bots react hypersensitively to every 5-basis-point move in bond yields. As swap markets rapidly price out near-term Fed rate cuts, this persistent elevation in yields will continue to compress multiples in growth and tech stocks. Short-term swap pricing suggests that rate cuts are unlikely to materialize in earnest until the second half of 2025.