Pre-Market | U.S. Treasury Yields Rise, Stocks Cautious, Tech and Commodity Shares Mixed

22 Jul., Dow futures down 0.15%, Nasdaq futures down 0.13%, and S&P 500 futures down 0.06% in pre-market, reflecting a cautious sentiment in the U.S. stock market. This decline comes as analysis forecasts the 10-year U.S. Treasury yield may climb to 4.8%-5.0% in the second half of 2025, with a 50-60 basis point increase in term premiums, driven by heightened bond supply from deficit concerns. This could add downward pressure on the dollar index and weigh on market sentiment, as rising yields could pressure equities through higher borrowing costs.

BHP Group shares rose 1.39% in pre-market trading, driven by improved financial performance due to strong commodity demand. UBS Group also saw a 1.27% increase, with expectations of bank earnings growth through 2028 leading to a share upgrade. Lockheed Martin, however, dropped 8.07% as challenges with classified programs and helicopter contracts affected its performance. Philip Morris shares fell 3.90% after revenue fell short of expectations.

In pre-market trading, BloomZ surged nearly 50%, driven by a strategic alliance with M-NEXT Holdings aimed at enhancing in-store experiences and talent development. Medpace Holdings also saw a significant rise, up nearly 45%, following strong quarterly earnings that exceeded market expectations. Meanwhile, reAlpha Tech experienced a sharp decline, dropping over 38%, after announcing a dilutive share offering at a discounted price. TNF Pharmaceuticals also saw a notable drop, falling nearly 18%.

Ten-year U.S. Treasury yields may increase to 4.8%-5.0% in the second half of 2025, driven by higher debt issuance. Approximately 60% of Middle Eastern sovereign wealth funds intend to elevate allocations to Chinese assets over the next five years, with emphasis on technology sectors. OpenAI and Oracle expanded their collaboration to add 4.5 gigawatts of 'StarGate' AI data center capacity, boosting the total under development to over 5 gigawatts. Apple is adjusting its product strategy by potentially launching up to six iPhone models in 2027.