US Stocks Pull Back as Treasury Yields Surge and Tech Earnings Loom

Markets face renewed profit-taking pressure while major indices slip, bond yields jump and investors await critical tech earnings reports.

US stocks quickly encountered profit-taking pressure after a sharp short-term rebound, with the S&P 500 flipping into negative territory just one day after its best single-session performance in weeks.

The Dow Jones Industrial Average edged down 6.06 points, or less than 0.01%, to close at 52,218.58. The S&P 500 fell 10.24 points (0.14%) to settle at 7,498.96. The tech-heavy Nasdaq Composite suffered a steeper decline, dropping 146.31 points (0.57%) to end at 25,690.90.

Market reports indicate that foreign investors have been net sellers in Taiwan's stock market for 11 consecutive days. Although Taiwan's stock market has seen a significant rebound recently, it still faces short-term adjustment pressure. Several major US technology companies are scheduled to report earnings later this week.

The Philadelphia Semiconductor Index bucked the trend, extending its momentum from the prior session to rise 54.50 points (0.44%) closing at 12,410.66. Although the Philadelphia Semiconductor Index posted a staggering gain of over 5% on Tuesday, it immediately encountered pressure the following day, indicating that significant selling pressure persists at higher levels.

In Asia, Japan's Nikkei 225 fell 0.91% while the Topix declined over 1.The Kospi dropped 4.41% while the small-cap Kosdaq added 3.2%. Australia's benchmark S&P/ASX 200 was little changed.

The yield on the benchmark 10-year Treasury note ? used to price mortgages, auto loans and credit card debt ? jumped nearly 5 bps to 4.71%. The 2-year Treasury note yield rose more than 4 bps to 4.27% while the 30-year Treasury bond yield also surged more than 4 basis points to 5.24%.

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