Stock markets opened with strong buying momentum for both the Nasdaq (QQQ) and the S&P 500 (SPY). Traders bought the usual stocks: the Magnificent Seven.
Microsoft (MSFT), NVIDIA (NVDA), Tesla (TSLA), Meta Platforms (META), and Alphabet (GOOG) traded higher.
Underneath the Nasdaq closing at a record high, bond yields continued to break through multi-decade highs. Still, Treasury bond yields closed a few basis points below the high.
Debt investors are unwilling to commit their funds in U.S. debt that matures longer than six months. They yield around 4.0% to 4.3%. Conversely, the 10 Year Treasury yielded 5.31%. The 30-Year Treasury yielded 5.66%. This pressured the two popular ETFs, IEF (7-10 year) and TLT (20+ year).
SpaceX (SPCX) continued its breakout. After shares drifted in the $140-$160 range since September, it broke out in the last week. SPCX stock gained 17.61%. Insiders are likely holding out on selling their vested shares. The restraint prevented SPCX stock from falling below $104.83.
Even though markets are bullish about SpaceX’s broadband satellite service, they are no longer bearish about Verizon (VZ) and AT&T (T). Telecom stocks recovered from the summer lows. However, T-Mobile (TMUS), Comcast (CMCSA), and Charter Communications (CHTR) are nearing yearly lows.
Higher overall competition between wired telecom and satellite is growing. That would pressure the industry’s profit margins.
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