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  • 🧨 This Failed Bond Auction Just Ripped Through the Market

🧨 This Failed Bond Auction Just Ripped Through the Market

The Treasury needs buyers. The market needs lower rates. Something has to give.

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šŸ“° Market Headlines

US stocks stumbled yesterday as worries over expanding US debt and President Trump's proposed tax bill sent Treasury yields surging.

  • The Dow plunged 1.9%, The S&P 500 slid 1.6%, and the Nasdaq fell 1.4%.

  • A 20-year bond auction contributed to the sharp climb in yields, with the benchmark 10-year Treasury yield adding 4.59%.

The bond market just broke the rally. A weak 20-year auction sent yields spiking and stocks sinking, ending the S&P 500’s six-day winning streak. The 30-year rose to 5.09% (levels not seen since 2023) as buyers balked at absorbing more U.S. debt. Bond demand is down, the US doesn’t plan to stop borrowing, and the Fed won’t cut rates due to threat of inflation. With deficits climbing and the Fed on hold, call it what you want—a panic, a warning shot, or just the sound of the debt bomb ticking louder.

Dollar dips as G-7 watches President Trump’s currency stance. The US dollar fell to a two-week low as traders watched the G-7 meeting for signs the Trump administration may favor a weaker currency. This weakness typically benefits multinational companies and commodities priced in dollars.

Trump’s ā€œBig, Beautiful Tax Billā€ passed by razor-thin margin. The bill cleared the House on a 215-214 vote and is on to the Senate after 21 hours of editing and debating its contents. Some of this 1,000 page piece of legislation’s goals are to make Trump’s 2017 tax cuts permanent and to get rid of taxes on tips.

Bitcoin hits—then pulls back. Bitcoin briefly rocketed to a new all-time high of over $111,000, eclipsing its January peak, before reversing course and falling with the broader market sentiment. The initial rally was attributed to improved risk sentiment and continued dollar weakness.

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šŸ“Š Alternative Investing News

  • Hedge fund EDL Global Opportunities notched 31% returns through May even as short bets on US stocks proved painful.

  • Brookfield CEO Bruce Flatt said inflation has helped parts of the firm’s business, especially infrastructure.

šŸ„‡ AltIndex Top Stock Analytics

We’re back with more alternative stock analytics from Altindex—this time, taking a look at the top 3 stocks by lobbying expenses.

To sign up for AltIndex and see the rest of the list, click here.

Of the three, only General Motors has a positive AI Score—mainly because of positive YoY growth and a relatively low P/E ratio of 7.01.

But AltIndex has even better stock picks than this—with much higher AI Scores than GM’s 66/100.

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Always do your own research.

āš”ļø Trade Wars

  • Nvidia CEO Jensen Huang declared US export controls on AI chips to China were "a failure" that cost American companies billions in lost sales.

  • China threatened legal action against any organization or individual assisting the US in discouraging the use of Chinese advanced semiconductors.

  • US importers are racing to establish bonded warehouses that allow them to delay or avoid tariff payments, driving record application volumes for these special customs-controlled facilities.

šŸ¤– AI/Future/Tech News

  • OpenAI acquired io for $6.5 billion, with renowned Apple designer Jony Ive now leading OpenAI's creative and design work.

  • Crusoe Energy secured $11.6 billion in financing to construct an eight-building datacenter for OpenAI in Texas.

  • Temenos debuted a generative AI tool called Product Manager Copilot to help banks speed up product development.

šŸŖ™ Crypto

  • Texas lawmakers passed a bill to create a state-managed Bitcoin reserve, now awaiting Governor Greg Abbott’s signature.

  • New crypto rules in South Korea will restrict exchange sales to top 20 tokens and tighten listing standards ahead of institutional market entry.

  • A 50% rally in five weeks has pushed Bitcoin into a volatile zone where thin liquidity and heavy short positioning are creating sharp reversals.

  • BlackRock’s IBIT ETF has now logged a 20-day inflow streak.

  • Oil prices slid 0.7% after news broke that the US and Iran will resume nuclear talks tomorrow.

  • A new CBO analysis found that President Trump’s legislative package would reduce resources for the bottom 10% of earners by 4% by 2033.

  • Rystad Energy’s Priya Walia warned that a potential Iranian retaliation could disrupt 500,000 barrels per day of oil flow through the Strait of Hormuz.

šŸŒ International Markets

  1. šŸ‡®šŸ‡¹ Italy's Prime Minister Giorgia Meloni touted a narrowing BTP-Bund spread as 10-year yields stayed above 3.5%.

  2. šŸ‡¬šŸ‡§ UK inflation jumped to 3.5% in April, its highest in over a year, driven by a surge in water and sewerage costs and higher household bills.

  3. šŸ‡©šŸ‡Ŗ Germany's economic council flagged a flatlining economy for 2025 after two previous contractions, but projected a modest recovery with 1.0% growth in 2026.

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šŸŽ¤ What you said last time

ā€œMinimal. It seems like most crypto-- is still a niche' thing to most average people.ā€

🚚 Market movers

  • AT&T bought Lumen’s consumer fiber business for $5.75 billion in cash.

  • Boeing stabilized 737 MAX production at 38 jets per month.

  • Coinbase confirmed a data breach affecting at least 69,000 customers.

  • Walmart cut 1,500 jobs across tech, e-commerce, and advertising as part of a restructuring to ā€œsharpen focusā€ and simplify operations.

šŸ“Š Earnings this week

  • Canada Goose outpaced Q4 estimates and revenue up 7.4%; shares soared 20%.

  • Zoom beat Q1 EPS estimates and raised full-year guidance, so shares slipped 1%.

  • TJX Companies posted Q1 revenue and EPS, both above estimates, but soft Q2 guidance and flat full-year outlook sent shares down near 3%.

  • Target reported a 2.8% drop in Q1 sales and a 3.8% decline in comps, while digital sales rose 4.7%; shares fell 5.21%.

  • Urban Outfitters delivered record Q1 revenue up 10.7% and stocks dropped 2.84%.

  • V.F. Corp saw Q4 revenue fall 5% as Vans sales plunged 22%, offsetting gains elsewhere, and shares crashed 15%.

šŸ“ŗ What to watch today

That’s all for today. Did I miss anything? Smash the reply button to let me know.

Cheers,
Brandon with Stefan & Wyatt

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