US EQUITY OPEN: US indices lower as Treasury yields soar

OPEN: US indices opened in the red, with the Russell 2000 lagging, as US Treasury yields continue to rally with the 10yr rising to 5.35%, the highest since 2002. Given the broader yield dynamics, the Dollar has seen notable strength, to the detriment of global FX peers while Euro is also pressured amid ongoing fiscal woes, while spot gold has been heavily sold. Sectors see downwards bias as Materials and Industrials lag, while Health, Energy, and Consumer Staples are the only ones in the green. The tech-heavy NDX is seeing pressure, and weighed on by losses in SpaceX. The crude complex is seeing gains, with diesels at highs, as desks continue to digest between ongoing US/Iran woes and supply reportedly improving, although latest updates from Iran said that US ideas are at opposite with Iran's demands, and there have been no negotiations between Iran and the US about Tehran's nuclear programme. There is little US data on Wednesday, and no Fed speak, ahead of US 10yr bond auction, FOMC Minutes, and NY Fed Survey of Consumer Expectations. STOCK SPECIFICS: Intel (INTC) CEO said Co. will continue working on Musk's Terafab chipmaking venture Constellation Brands (STZ) FY midpoint profit view light alongside softer underlying beer demand & reduced op. margin outlook Frasers Group has built an 8.8% stake in Under Armour (UAA), acquiring 16.6mln shares Chevron (CVX) to divest ownership interests in Hess Midstream (HESM) & DJ Basin Crude midstream assets; HESM cut FY outlook SpaceX (SPCX) seeks $40bln financing led by Apollo to fund Nvidia chips ZIM Integrated Shipping Services (ZIM) raised FY adj. EBITDA & adj. EBIT guidance Black Hills (BKH) signed agreements through 2048 to supply a planned Google data centre in Wyoming WeBull's (BULL) China ties create national security risk Neogen (NEOG) reported strong earnings & raised FY26 guidance Google (GOOGL) and Unity (U) Partner on new AI gaming platform for the next era of interactive entertainment