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Investment Daily: US stocks fell amid tech weakness and higher Treasury yields

8 July 2026

Key takeaways

  • US stocks and Treasuries fell.
  • European stocks and government bonds fell.
  • Asian stocks mostly fell.

Markets

US stocks fell on Tuesday amid further weakness in AI-related stocks and higher bond yields. The S&P 500 ended 0.4% lower, while the tech-heavy Nasdaq lost 1.2%.

US Treasuries fell as higher oil prices revived inflation concerns. 10-year yields rose 8bp to 4.55%.

European stocks fell on Tuesday as investors assessed geopolitical developments. The Euro Stoxx 50 fell 1.2%. The German DAX dropped 1.4% and the French CAC 40 lost 0.5%. In the UK, the FTSE 100 edged up 0.1%.

European government bonds fell. 10-year German bund yields rose 4bp to 2.99% and 10-year French bond yields climbed 6bp to 3.79%. In the UK, 10-year gilt yields closed 6bp higher at 4.85%.

Asian stock markets mostly fell on Tuesday, as further losses in technology shares weighed on market sentiment. Korea’s Kospi dropped 4.9% while Japan’s Nikkei 225 lost 2.1%. Elsewhere, China’s Shanghai Composite and Hong Kong’s Hang Seng fell 1.3% and 0.5% respectively. India’s Sensex ended little changed (-0.1%).

Crude oil prices rallied on Tuesday amid geopolitical worries. WTI for August delivery rose 2.8% to USD70.4 a barrel. 

Key Data Releases and Events

Releases yesterday

The Bank of Japan (BoJ) raised its policy rate by 25bp to 1.00%, as widely expected, and decided to halt the reduction in JGB purchases from April 2027. The BoJ highlighted the risk of underlying CPI inflation deviating upward above 2%.

The Reserve Bank of Australia (RBA) kept its policy rate unchanged at 4.35%, as widely anticipated. Governor Bullock noted upside risks to inflation and did not rule out further tightening.

In China, May activity indicators continued to reflect a two-speed economy. Industrial production showed resilience, up 4.5% YOY, driven mainly by gains in high-tech manufacturing and new energy sectors thanks to robust exports. However, non-tech domestic demand was softer than expected as the property sector remained under pressure. Retail sales fell 0.6% YOY, partly reflecting an unfavourable base effect from last year’s trade-in subsidies. Fixed asset investment contracted by 4.1% YOY in the first five months, despite strong advanced manufacturing investment.

Releases due today (8 July 2026)

The Reserve Bank of New Zealand is likely to resume tightening in Q3 2026 due to rising cost-push inflation.

In the US, June Fed meeting minutes should confirm diverging views on the US growth, inflation and policy outlook.

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