Nasdaq Index: Rising Bond Yields Threaten Nasdaq Uptrend as Memory Stocks Sink

• The 30-year Treasury yield hit 5.305% (19-year high) while Japan, Germany, and France also saw long-bond yields reach multiyear or multidecade highs in the same session
• Memory semiconductor stocks reversed Monday's gains sharply: Western Digital down 7%, SanDisk down 8%, with Marvell and Seagate each off more than 8%
• The Nasdaq-100 futures tested the critical 50-day moving average at 29,513, with analyst warning that a break below this level could trigger acceleration toward 29,150

Market Summary: Nasdaq Under Pressure as Bond Yields Surge

Key Market Movements:

The Nasdaq Composite fell 1.77% on Tuesday, while the S&P 500 declined 0.68% and the Dow Jones Industrial Average remained near flat (+0.49%). The tech-heavy index broke below a key pivot at 26,541.98, shifting the minor trend to downside and testing the 50-day moving average at 25,914.87.

Bond Market Driving Selloff:

The 30-year Treasury yield hit a 19-year high at 5.305%, while the 10-year held near 4.72%. This represents a global phenomenon, with long-bond yields in Japan, Germany, and France also reaching multiyear or multidecade highs. Strategist Ed Yardeni warned that a 10-year yield approaching 5% would raise financing hurdles for the entire market.

Semiconductor Sector Hit Hard:

Memory stocks reversed sharply after Monday's gains. Western Digital fell over 7%, SanDisk dropped more than 8%, while Marvell and Seagate each declined over 8%. The selloff occurred despite unchanged AI demand and ongoing DRAM/NAND shortages, as traders repriced growth stocks against elevated yields.

Energy Adding Pressure:

WTI crude rose nearly 1% to above $85 per barrel, with Brent near $91. Ongoing tensions with Iran and the Strait of Hormuz restrictions continue to elevate inflation concerns, feeding into bond market weakness.

Technical Outlook:

The Nasdaq-100 futures are testing critical support at the 50-day moving average (29,513.17). A break below could trigger acceleration toward 29,150.75, with further downside targets at 28,772.25-28,401.50.

Bright Spot:

Home Depot gained 1.5% after beating earnings expectations and reaffirming full-year guidance.