Heavy Lifting

We’ve become a bit numb to the magnitude of the moves in bond yields and in oil, but remember that, historically speaking, they are huge. Yields and oil are working together to put pressure on Monday’s premarket. The 10-year yield has reached 5.22% (up from 5.18% on Friday). Oil has pushed more than $3 higher, to $95.65. Since March, the 10-year yield has risen more than 100 basis points, or one full percentage point, to its current level, with the Treasury and the White House gaming it and fighting it the whole way. Likewise, oil is up 47% since the end of February.

At least in the premarket, tech (META, INTC, ORCL) and airlines (DAL, UAL) are feeling the weight. However, even in the face of the interest rate and commodity headwinds, the leading names do not stay depressed for very long. We credit phenomenal growth powered by the AI industry. Thing is, the headwinds aren’t letting up, so 3Q growth had better be amazing, or we’ll see some significant repricing in a hurry.

Today is SPCX launch day. The Super Heavy will attempt to place Starlink satellites in low Earth orbit. Both components of the craft, the booster and (for the first time) the Starship itself, will attempt controlled landings. Aside from the investment implications, anyone who hasn’t seen these landings really should take a moment to witness an amazing technological feat. Turning back to the trading implications, look for real time reactions in SPCX stock, and possibly in the larger tech space as well, as the mission progresses.