US stocks tumble. Yields start to weigh on the equities

U.S. equities have reversed sharply into negative territory amid a surge in Treasury yields, following a disappointing 20-year bond auction.

• The Dow Jones Industrial Average is down 684 points (-1.61%).

• The S&P 500 has dropped 63 points (-1.07%).

• The NASDAQ Composite is lower by 139 points (-0.73%).

🔻 Leading laggards for the hard hit Dow:

• Apple (AAPL): −2.11%
  
  Heavily weighted Dow component under pressure on valuation and growth concerns.

• UnitedHealth (UNH): −4.13%
  
  Continued weakness after a downgrade and concerns over margin compression in managed care.

• Nike (NKE): −1.79%
  
  Ongoing softness in discretionary consumer demand weighs on shares.

• Salesforce (CRM): −0.65%
  
  Pullback continues in software names despite recent AI investments.

• Amgen (AMGN): −1.48%, Johnson & Johnson (JNJ): −0.07%
  
  Healthcare stocks broadly weak, dragged down by policy risk and rotation out of defensives.

• American Express (AXP): −1.34%
  
  Financials underperform as higher yields stoke concerns over consumer debt and repayment.

✅ Relative outperformers:

• Coca-Cola (KO): −0.08%
  
  Defensive staple nearly flat, showing relative strength amid broad risk-off.

• Merck (MRK): +0.26%
  
  A rare gainer in healthcare, supported by product news and stable fundamentals.

• Cisco Systems (CSCO): +0.19%
  
  Modestly higher despite tech weakness, aided by its more defensive, dividend-rich profile.

The losers in the Nasdaq:

🔻 Biggest drags on the Nasdaq index:

• Apple (AAPL): −2.11%
  
  Heavyweight tech stock under pressure as yields rise and concerns grow about demand softness.

• Tesla (TSLA): −1.82%
  
  Weakness continues amid broader rotation out of high-beta names.

• Amazon (AMZN): −1.39%
  
  Retail trade lagged; Amazon shares slid as growth and margin concerns remain in focus.

• Microsoft (MSFT): −1.16%
  
  Despite AI tailwinds, shares followed the broader tech sector lower.

• NVIDIA (NVDA): −0.42%
  
  Marginally down as traders take profits ahead of key earnings later this week.

• Palo Alto Networks (PANW): −5.90%
  
  One of the day’s sharpest decliners following a disappointing outlook.

• Workday (WDAY): −1.42%
  
  Software names broadly underperformed; Workday joined the slide after recent strength.

• Advanced Micro Devices (AMD): −0.37%, Intel (INTC): −1.39%
  
  Chips were mixed, with selling concentrated in older-generation and data center plays.

✅ Notable outperformers:

• Alphabet (GOOGL): +3.28%
  
  Continued strength after unveiling new AI-powered search tools; stands out as the day’s top mega-cap performer.

• CrowdStrike (CRWD): +14.16%
  
  Soared after upbeat earnings and bullish guidance, a rare green spot in the cybersecurity space.

• MercadoLibre (MELI): +1.05%
  
  Latin America’s Amazon analog traded higher amid regional tech momentum.

The selloff in equities coincides with renewed pressure in the bond market. The 10-year yield has jumped 10.0 basis points to 4.582%, while the 30-year bond yield is up 10.5 basis points, now trading at 5.073%.

The weak demand at today’s 20-year auction reinforced concerns about long-term fiscal supply and has triggered a broad repricing in risk assets.

The EURUSD is extending back toward the European session high at 1.1361. The current price is at 1.1357

The USDJPY is moving lower despite the rise in yields. It is trading near new session lows at 143.36. They 61.8% retracement of the move up from the April low to the May high comes in at 143.225.