Nasdaq-100: Banks Are Moving Higher While Tech Waits for the Long Bond to Cool Off

• The S&P 500 and Nasdaq are headed for their first weekly declines in four weeks, with the Nasdaq-100 trading below its 50-day moving average at 29,517 despite Friday's bounce
• Financials rose 0.92% and materials gained 2.31% while technology fell 0.09%, reflecting sector rotation toward assets that can handle higher interest rates
• The 30-year Treasury yield hit a 19-year high Tuesday and remains elevated despite government buyback announcements, while crude oil above $93 (Brent) keeps inflation concerns active ahead of the Fed's next policy decision

Market Summary: Nasdaq-100 Faces Pressure as Bond Yields Rise, Banks Lead Sector Rotation

Key Market Movements

The Nasdaq-100 futures bounced Friday but remain under pressure as the 30-year Treasury yield holds near 19-year highs reached Tuesday. Despite Friday's gains, the S&P 500 and Nasdaq are on track for their first weekly declines in four weeks. The E-mini Nasdaq-100 futures are trading below the 50-day moving average at 29,517, indicating weakness, while sitting in an intermediate retracement zone of 29,150.75 to 29,610.75.

Sector Rotation

A clear risk-on rotation emerged, with financials (+0.92%) and materials (+2.31%) leading gains. The S&P 500 banks index rose 1.1%, with JPMorgan Chase up 1.2% and Goldman Sachs gaining 2.3%. Conversely, technology remained flat (-0.09%), revealing investor caution toward rate-sensitive growth stocks. Meta and Tesla each rose over 1%, but sector-wide underperformance persists.

Crypto and Individual Movers

Bitcoin hit its highest level since late May, driving Robinhood up 12.4% and Coinbase up 9.5%. Ross Stores jumped 4.2% after raising annual profit guidance. UBS raised its year-end S&P 500 target to 8,100.

Market Catalysts

Crude oil (Brent above $93) remains elevated due to Iran-related shipping disruptions through the Strait of Hormuz, keeping inflation concerns front and center. Treasury buyback announcements provided only temporary relief before yields resumed climbing.

Outlook

Next week's critical events include the PCE inflation report, Jackson Hole speeches, and Nvidia earnings—all occurring while FOMC minutes suggest rate hikes remain possible. The bond market has dominated price action this week, and upcoming data will determine whether Friday's bounce sustains.