DeepCap Friday Outlook

Surging yields and Fed hike odds rattle risk appetite across markets

DeepCap Friday Outlook

The Day at a Glance

๐ŸŽฏ Theme: Surging yields and Fed hike odds rattle risk appetite across markets
๐Ÿ“Š Risk Mood: Cautious (VIX 18.7, +12.38%)
โฐ Key Event: US flash PMI data due today (Manufacturing forecast 54.3, Services 51.5) โ€” readings will test whether activity is holding up under rising rates and oil pressure
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Key Headlines

  1. The Fed Is Heading Into One of Its Most Unpredictable Meetings in Years
    A convergence of Fed uncertainty, ECB rate decisions, surging bond yields, and rising mortgage rates dominates the macro policy landscape.
  2. U.S. Stocks Fall as Tech Selloff Deepens, Oil Prices Hit $100 a Barrel
    Tech stocks are tumbling on spending worries and valuation concerns even as AI dependence grows structurally.
  3. Mexico to see no change from new US tariffs, economy minister says
    US tariff policy ripples through trade partners, with Mexico asserting minimal direct impact.

The Day Ahead

Yesterday’s Takeaway

Bond yields are the story. The UST10Y hit 4.71 โ€” its 52-week high โ€” as Fed rate-hike odds surged on rising oil prices, rattling equities globally. That yield print hammered risk assets across the board: Tesla fell -14.52%, STMicroelectronics dropped -18.67%, and Mobileye shed -14.92%, reflecting a brutal repricing of rate-sensitive growth names. Asia carried the pain overnight โ€” the Nikkei 225 closed at ยฅ64,540 (-2.83% day), the KOSPI cratered to โ‚ฉ6,715 (-5.38% day), its worst single-session move of the week. The ECB held rates but kept the door open to further hikes, reinforcing the “higher for longer” message on both sides of the Atlantic.

The Setup

Risk indicators are flashing caution. The VIX at 18.7 (+12.38% day) is pressing against its 52-week high of 18.77 โ€” another leg higher breaks into territory unseen in a year. The DE10Y reached 3.23 (+0.94% day), also at its 52-week high, confirming the sovereign selloff is not a US-only phenomenon. EUR/USD holds at 1.14, flat on the day, suggesting currency markets are absorbing the shock rather than amplifying it. EURIBOR3M eased slightly to 2.46 (-0.81%), but remains near its 52-week ceiling of 2.49 โ€” European short rates offer little relief. The divergence to watch: IG credit and equity vol are both elevated, but FX hasn’t broken. That gap tends not to last.

Today’s Watch

The calendar is thin, with Israel industrial and manufacturing production (forecast: -17 for manufacturing) at 10:00 and South Africa trade data at 06:00. Neither is a market mover. The session’s real focus is yield trajectory โ€” specifically whether UST10Y consolidates below 4.71 or extends. With the Fed meeting described as one of its most unpredictable in years, any Fed speaker commentary or oil price move above yesterday’s close could reprice rate expectations again. Watch energy stocks and rate-sensitive tech for directional cues at the open.

Market Movers

๐Ÿ“ˆ Top Gainers

  • NovoCure Limited โ€” +28.39%
  • Cleveland-Cliffs Inc. โ€” +15.98%
  • Medpace Holdings, Inc. โ€” +14.71%
  • EquipmentShare.com Inc โ€” +11.88%
  • Imax Corporation โ€” +11.86%
  • Lockheed Martin Corporation โ€” +10.54%
  • Allegion plc โ€” +10.45%
  • WEX Inc. โ€” +10.14%

๐Ÿ“‰ Top Losers

  • Liberty Energy Inc. โ€” -21.96%
  • Albertsons Companies, Inc. โ€” -21.64%
  • STMicroelectronics N.V. โ€” -18.67%
  • Mobileye Global Inc. โ€” -14.92%
  • Tesla, Inc. โ€” -14.52%
  • QuantumScape Corporation โ€” -12.86%
  • Xometry, Inc. โ€” -12.12%
  • ChronoScale Holdings Corporatio โ€” -11.63%

Key Events Today

Date Region Event Impact
Fri 07/24 US S&P Global Manufacturing PMI ๐Ÿ”ธ Med
Fri 07/24 US S&P Global Services PMI ๐Ÿ”ธ Med
Fri 07/24 US S&P Global Composite PMI ๐Ÿ”ธ Med

Central Bank & Policy Calendar

  • July 24 โ€” ECB Lane Speech
    [ecb]

Macro Dashboard

Indicator Level ฮ” d/d ฮ” w/w 52W Range Signal
VIX 18.7 +12.38% +11.78% 15.03โ€“18.77 โš ๏ธ Elevated
EUR/USD 1.14 0.0% โ€” โ€” Neutral
EURIBOR 3M 2.46% -0.81% -1.2% 2.31โ€“2.49 ๐Ÿ“ˆ Sticky
US 10Y 4.71% +0.21% +3.52% 4.47โ€“4.71 ๐Ÿ“ˆ Bid
DE 10Y 3.23% +0.94% +2.22% 2.95โ€“3.23 ๐Ÿ“ˆ Bid

๐Ÿ” Today’s DeepList Spotlight

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๐Ÿ“ฐ Yesterday’s Headlines (6 themes)

Rates, Central Banks & Mortgages

A convergence of Fed uncertainty, ECB rate decisions, surging bond yields, and rising mortgage rates dominates the macro policy landscape.

AI/Tech Valuation Jitters & Market Selloff

Tech stocks are tumbling on spending worries and valuation concerns even as AI dependence grows structurally.

Trade & Diplomacy

US tariff policy ripples through trade partners, with Mexico asserting minimal direct impact.

China/Asia Policy & Markets

PBOC injects significant liquidity to support growth, signaling proactive easing amid global tightening pressure.

Market Moves & Daily Wraps

Live market coverage and broad cross-asset session updates.

Other Market News

Additional headlines across various market themes.

This content is for informational purposes only and is not investment advice. Markets carry risk. Do your own research.