Among other chip groups, AMD managed to swing to a gain of 3.5%, despite being as much as 8% lower earlier today, while On Semiconductor gained more than 4%.
Magnificent Seven stocks (Alphabet, Amazon, Apple, Microsoft, Nvidia, Meta and Tesla) remained at least 2% lower, but had clawed back declines from earlier.
The likes of Microsoft, down 2.6%, and Apple, down 3.7%, had reduced their declines from earlier in the day by at least half.
The two-year Treasury yield was up modestly around midday in New York (4am NZT), recovering from an overnight plunge, and suggesting that traders were backing off some of the more dramatic bets on Federal Reserve interest rates cuts this year.
The two-year yield, which tracks interest rate expectations closely, was last up 0.02 percentage points to 3.88%. Overnight, during Asian trading, it had fallen to a 16 month low of 3.65%.
In the futures market, traders had reduced bets on a jumbo 0.5 percentage point cut at the Fed’s next meeting in September, though the odds are still at roughly 93%.
About one in 10 stocks in each of Wall Street’s main indices were making gains, despite a broad sell-off that swept across global markets.
All sectors in the S&P 500 were down by at least 1%, but real estate, industrials and utilities were relatively better off.
The benchmark index’s best performing stock was Pringles-maker Kellanova, which was up 14.4% in afternoon trading, following reports that food and petcare conglomerate Mars was in talks to buy the company.
Among other selected stock moves, Tyson Foods shares were next best, up 4.2%, after the meat manufacturer reported a solid set of quarterly results.
Generac Holdings, a maker of back-up generators, and utility group Constellation Energy were up 1.6% and 1.5%, respectively.
The price of bitcoin dropped 10% on Monday, bringing the world’s most popular cryptocurrency down to $54,000, its lowest since February, after recovering from dipping below $50,000 earlier.
The price of ethereum, the second most traded token, plunged 15% on Monday to $2400.
Trading volumes in BlackRock’s bitcoin ETF hit 57.7mn on Monday according to data provider Coinglass, nearly triple its 10-day average volumes, underscoring how institutional investors were rushing to trade the biggest crypto ETF, which fell 13% in morning trading.
Some emerging market currencies plunge
Emerging market currency and stock investments funded with cheap yen disintegrated on Monday, after rising Japanese rates cratered “carry trades” across global markets.
Investors sold everything from the Mexican peso to Taiwanese shares as they hastily left trades funded by borrowing at low rates in the Japanese currency to buy high-yielding assets in emerging markets, which have now turned sour.
The Mexican peso was down about 2% against the yen on Monday, taking its loss over the past month to almost a fifth, and down 2.4% against the US dollar, reaching its lowest point since December 2022.
The Brazilian real, another longtime beneficiary of carry trades because of Brazil’s high local interest rates, has fallen more than 15% against the yen in the past month.
Written by: Emily Herbert and Joseph Cotterill in London, Kate Duguid, Zehra Munir, Jaren Kerr and Nikou Asgari in New York
© Financial Times
