Inflation fears hit tech: S&P 500 retreats under pressure from bond market

The US equity market faced a notable correction. The benchmark S&P 500 lost ground amid renewed concerns about accelerating inflation. The primary driver of the sell-off was a sharp rise in Treasury yields, which increased the appeal of risk-free assets and pulled capital away from equities. The technology sector, particularly semiconductor makers, took the hardest hit. These companies are typically most sensitive to rising rates and higher borrowing costs. Analysts increasingly warn of elevated risks of a deeper drawdown, since fundamentals do not yet support a rapid rebound in prices. The rotation of liquidity and heightened volatility in tech create fertile conditions for active traders. Take advantage of InstaForex's flexible trading terms to profit not only from market rallies but also from short-term short positions on equity indices. Follow the link for more details.

US president's visit to China disappoints investors

The outcome of the US president's trip to Beijing disappointed global markets. The summit produced no meaningful breakthroughs or new trade deals. At best, it highlighted persistent tensions and big structural differences between the world's two largest economies. For investors, who had been banking on a thaw in bilateral relations and lower trade barriers, the summit underscored the need to reprice geopolitical risk.

The absence of clear diplomatic progress increases uncertainty around international trade prospects and the stability of global supply chains. With a prolonged standoff, markets must now incorporate scenarios of sustained high import tariffs and continued tech restrictions—permanent background pressures on multinational companies exposed to Asian markets. Follow the link for more details.

Bitcoin hits two-week lows amid ETF outflows

Bitcoin came under heavy bearish pressure, sliding to two-week lows as global risk appetite deteriorated in response to changes in the US macro backdrop. At the same time, the market is registering significant outflows from spot crypto ETFs, removing a key source of liquidity that had supported prices in recent months.

Traders are increasingly skeptical about the near-term outlook for the crypto sector under tight monetary conditions. With institutional investors trimming their digital asset exposure, Bitcoin will struggle to find a new support level until rates and risk sentiment stabilize in traditional markets. Follow the link for more details.

Bond market sets records: Treasury yields boost USD, weigh on EUR

US Treasury yields have surged to multi-year highs, reshaping dynamics in the global FX market. The sharp move in fixed income reflects growing investor concern that the Federal Reserve may remain too passive in the face of inflationary pressure. Market participants fear that the Fed could allow the economy to overheat, which immediately translates into higher government yields.

The result has been a strong dollar rally against a basket of major currencies, with the euro among the main casualties. Follow the link for more details.

Inflation shock hits Dow Jones: markets pause ahead of corporate giant reports

Futures on the Dow Jones came under heavy selling pressure after unexpectedly high US consumer price data. The surprise print shattered hopes of an imminent easing in financial conditions, forcing bulls to step back. The index is now testing key support levels. Their breakout could trigger cascade selling and open the door to deeper market weakness.

In this turbulent macro environment, traders are shifting focus to corporate earnings as the next decisive factor. Reports from heavyweights such as Nvidia and Walmart will be the main volatility catalysts in the coming days. Their ability to sustain margins under rising input costs will determine whether equity markets can avoid a full-blown bearish trend. Follow the link for more details.