Markets Caught Between Yield Surge and Earnings Season

Macro Backdrop

Treasury yields are the dominant story today. Ten-year borrowing costs have hit their highest level in nearly three years. Treasury Secretary Bessent's $6 billion buyback plan fell short of investor expectations. That disappointed bond markets and pushed yields higher. US-China borrowing costs have also diverged to the widest gap on record. The Bank of Japan added to pressure. A BoJ official said Japan must raise rates — hawkish comments that follow Bessent's own warning not to bet against the yen.

Earnings in Focus

Oracle and Adobe reported after the close on September 10. Both carry light short interest — 2.9% and 4.7% of free float respectively. AI-driven cloud growth is the key watch for Oracle's Q1 FY2027 results. Kroger reports today. Consumer spending signals will be closely watched as inflation pressures persist.

Short Sellers Pile Into Tech and Consumer

Chewy is one of the most crowded short trades in the market at 54.9% of free float. Options flow is also bearish on the stock, which is down 37% year-to-date. Wix.com saw short interest jump nearly 7.5 percentage points in a week to 18.2%. In chips, put buyers are active on both Micron and NVIDIA despite Micron's 260% year-to-date gain.

Asia Insiders Split

The executive chairman of Shenzhou International bought $25.6M in shares across three days — a clear sign of confidence. Meanwhile, the founder-CEO of Malaysian AI firm Zetrix AI Berhad filed net disposals of over $42M in the same period. Uber COO Andrew McDonald also filed a $4.1M transaction.

Europe Watch

European stocks slid as defense names outperformed. A Ukraine-EU loan deal ratification boosted defense sentiment. Aston Martin weighed on a London hedge fund with concentrated credit exposure. Rising gilt yields continue to pressure UK markets.