European markets experienced an uptick, notably led by Spain’s Ibex, which increased by 0.90%. Germany’s DAX saw gains of 0.33%, France’s CAC rose by 0.18%, the UK’s FTSE 100 went up by 0.24%, and Italy’s FTSE MIB climbed 0.65%.
In the U.S., market indices also climbed, fuelled by Apple’s announcement of a $100 million investment in the country and clarification that Indian-made products will avoid tariffs. Apple’s shares surged by $12.00, reaching $214.91. The Dow industrial average increased by 123.40 points (0.28%) to 44236.07, the S&P index climbed 45.50 points (0.72%) to 6344.40, and the NASDAQ index rose by 206 points (0.99%) to 21122.13.
US Bond Yields Rise
U.S. bond yields rose ahead of a Treasury auction for 10-year notes, with longer-term yields particularly higher. The 2-year yield reached 3.717%, the 5-year 3.784%, the 10-year 4.235%, and the 30-year yield climbed to 4.820%.
Crude oil prices fluctuated, initially rising then falling below its 100-day moving average at $64.74. It flirted with the July 23 low of $64.71, potentially heading for $63.61. Gold prices softened, down by $5.78, while Bitcoin rebounded approximately $1,000 to settle at $115,177.
Today’s market is being pulled higher by a major surge in Apple, which is testing a key resistance level around $214. This single stock is driving the NASDAQ’s outperformance, and derivative traders should watch this specific price point for either a breakout or a rejection. A failure here could signal a short-term top for the tech sector.
This move in Apple is supported by reports from last month showing a 25% year-over-year increase in its manufacturing output from India, making the tariff news more impactful. This growth, combined with the recent Q2 2025 GDP revision to 2.2%, gives bulls a reason to be confident. We see this as a justification for buying call options on key tech names, but with significant caution.
Impact of Treasury Yields
However, we must watch the simultaneous rise in US Treasury yields, with the 10-year now at 4.235%. This is a direct challenge to the stock market rally, making borrowing more expensive and bonds more attractive. The tension is heightened with a 10-year note auction happening later today, which will be a key test of investor demand.
This yield pressure is partly fueled by the July 2025 CPI data, which came in at 3.5% and reminded us of the inflation battles from 2022-2023. We remember how rising rates eventually choked off equity momentum back then, a pattern that cannot be ignored. Traders might consider buying puts on bond ETFs, betting that yields will continue to climb if the auction shows weak demand.
In commodities, crude oil is showing significant weakness, currently testing the key $64.71 support level. The latest Energy Information Administration report showed a surprise crude inventory build of 2.1 million barrels, which is weighing heavily on the price. A decisive break below this support could trigger further selling, making puts on oil ETFs a timely strategy.
Meanwhile, gold is struggling as rising yields and a risk-on mood in stocks reduce its appeal for now. In contrast, Bitcoin’s strong rebound suggests speculative appetite remains high, offering opportunities for traders comfortable with volatility. In Europe, the outperformance of Spain’s Ibex over Germany’s DAX suggests a potential pairs trade for those looking to diversify away from US tech concentration.
