Bears, Bonds, and Bessent: Markets Grip Tighter

The Big Picture

Bond markets are the day's dominant story. US Treasury yields pushed higher despite Treasury Secretary Scott Bessent's $6bn intervention. Investors are calling it insufficient. German borrowing costs hit their highest since 2009. France's debt interest bill is set to jump 25% this year. The broad message from global bond markets: fiscal stress is not going away.

Oil is adding to the pressure. US diesel hit a record $6 a gallon as Iran supply disruptions bite. The IEA warned the Strait of Hormuz will not reopen this year. Refined product prices are surging. That stokes inflation fears at exactly the wrong moment for central banks.

US: Tech and Software Under Fire

ADBE is the day's sharpest single-stock story. At least four analyst firms cut price targets following a weak earnings reaction. JP Morgan dropped to $315. Jefferies went to $275. The consensus now shows 23 Hold ratings against just 5 Buys. That's a cautious wall for a $99 billion company to climb.

NVDA faces pressure from two sides. Options traders are building bearish positions in chips after AI growth concerns resurfaced. A board director also filed $411M in stock sales last week. Meanwhile, LCID short interest jumped 14 points to nearly 50% of free float. Bears are piling in fast.

QSR offered a bright spot. Restaurant Brands International announced a buyback covering 10% of its public float. FRO declared a special one-time dividend of $0.80 per share.

Europe: Defense Rallies, Dulux Soars

European defense stocks rallied after Ukraine ratified a $105 billion EU loan deal. The Dulux maker — AKZ — surged after rejecting a rival's $14.5 billion takeover bid. UK inflation data kept gilt yields elevated and traders cautious heading into the weekend.

Week Ahead

KR reports this morning. LEN and TCOM follow Tuesday. UK retailer NXT drops numbers Thursday alongside US insurer PGR.