Finance

Disappointing second-quarter corporate reports pulled tech heavyweights into negative territory, ending a dominant market rally. Tesla plunged roughly 14% to 15% after missing profit estimates and reporting negative free cash flow for the first time in two years. Simultaneously, Google parent Alphabet shed about 7% of its value as investors penalised the company for doubling down on capital expenditures for artificial intelligence development.

The $30 trillion U.S. bond market is flashing warning signals as selling pressure pushes the 10-year Treasury yield up to 4.71%, a high not seen since January 2025. Investors are moving out of fixed income as soaring energy costs raise the likelihood of a higher-for-longer monetary policy stance from the Federal Reserve. The jump in borrowing costs is expected to spill over into consumer lending, particularly real estate and automotive financing.

Cryptocurrencies are consolidating in a tight trading range, with Bitcoin hovering around the $65,000 baseline. Market sentiment is weighed down by escalating U.S. Treasury yields, ongoing profit-taking, and political squabbling over the regulatory Clarity Act in the Senate. Broader altcoins like XRP also faced downward pressure amidst regulatory friction regarding structural financial oversight.