CNBC Daily Open: Treasury yields are making a return, like an uninvited ex

Yields proceed weighing connected stocks
U.S. stocks slumped Wednesday arsenic Treasury yields continued rising. Megacaps specified arsenic Apple, Nvidia and Meta slid much than 2%. On Thursday, Asia-Pacific markets mostly followed Wall Street downwards. South Korea's Kospi scale mislaid astir 0.7% arsenic the state reported a 0.1% quarterly maturation for its GDP, narrowly avoiding a method recession.

Tesla beats net forecast
Tesla shares jumped 12% successful extended trading aft the company's third-quarter net beat Wall Street estimates. However, Tesla's gross for that period, up 8% twelvemonth connected year, marginally missed expectations. "Vehicle growth" volition deed up to 30% adjacent year, said CEO Elon Musk, acknowledgment to "lower outgo vehicles" and the "advent of autonomy."

Record nett for SK Hynix
SK Hynix reported a record nett of 7.03 trillion won ($5.08 billion) for its 3rd quarter, beating LSEG estimates. Quarterly gross for the South Korean chipmaker jumped 94% twelvemonth implicit year, though it inactive came successful somewhat beneath expectations. SK Hynix is 1 of the world's largest manufacturers of representation chips and is simply a cardinal supplier to Nvidia.

Potential Chinese tie-ups for Apple Intelligence
On Wednesday, Apple CEO Tim Cook met China's Minister of Industry and Information Technology Jin Zhuanglong successful the country, according to a ministry statement. "The institution could beryllium looking to enactment up collaboration with section players to launch Apple Intelligence successful China," said Ivan Lam, elder probe expert for Counterpoint Research. 

[PRO] Top picks successful European stocks
Europe's banal marketplace whitethorn beryllium lagging that of the U.S. truthful far, but that's a generalization that doesn't use to each stocks. Bernstein has named its "top picks" successful European stocks, with four, from divers sectors, that the probe steadfast thinks person the imaginable to emergence by much than 50%.

Like an unwelcome ex-partner who shows up during the astir inopportune times and refuses to leave, Treasury yields excessively person made a instrumentality and are hogging the marketplace limelight.

Yields person been rising implicit the past period with the 10-year Treasury output gaining astir 4 ground points to 4.25% connected Wednesday. During the U.S. trading session, the 10-year output touched 4.26%, its highest level since July 26.

This is happening adjacent arsenic the U.S. Federal Reserve slashed involvement rates by 50 ground points astatine its September gathering and indicated it would lower rates further by the aforesaid amount by the extremity of the year.

It seems similar markets person oscillated from worrying astir weakness successful the U.S. to worrying that the U.S. system is excessively strong.

The Fed's "Beige Book" struck a affirmative enactment connected the economy. Most regions successful the U.S. "reported debased idiosyncratic turnover, and layoffs reportedly remained limited," the study stated, portion "contacts were somewhat much optimistic astir the longer-term outlook."

It's not inconceivable, then, that the beardown system mightiness punctual the Fed to dilatory down, oregon adjacent clasp back, its complaint cuts.

"To me, it's each astir the interaction of higher rates. The marketplace is repricing the probability that the Fed tin aggressively chopped rates," said Brent Schutte, main concern serviceman astatine Northwestern Mutual Wealth Management.

The banal marketplace slumped arsenic yields rebounded. The S&P 500 retreated 0.92%, the Dow Jones Industrial Average mislaid 0.96% — its worst time successful much than a period — and the Nasdaq Composite fell 1.6%.

But Paul Hickey, co-founder of Bespoke Investing Group, said investors shouldn't panic. "It's a unsmooth day, but these days happen," Hickey told CNBC. And Wells Fargo thinks stocks could rally successful 2025 contempt near-term uncertainties.

While rising Treasury yields look to person stalled the banal rally, similar astir unwanted guests, they'll apt retreat successful clip and markets should resume their upward people if net stay strong.

— CNBC's Jeff Cox, Lisa Kailai Han, Pia Singh and Brian Evans contributed to this report.