Trading Day: Tech, tariffs & Treasuries

U.S. bond yields fell and tech stocks declined on Monday, as investors analyzed a range of economic data and developments from Washington. The Treasury Department plans to increase purchases of long-dated bonds, and new sanctions targeting Iran were announced. Additionally, there are concerns about potential tariffs on Canada. U.S. Treasury Secretary Scott Bessent faces pressure to improve his credibility, as his efforts to reduce the deficit and lower bond yields have not been successful.

Markets reacted positively to his plans to use the Treasury General Account for purchasing longer-dated bonds, but questions remain about the feasibility of this approach. Tariff tensions between the U.S. and Canada continue to escalate, with President Trump threatening 50 percent tariffs on Canadian goods. Federal Reserve Chair Kevin Warsh is set to deliver a speech at the Kansas City Federal Reserve's annual Jackson Hole symposium, where he will discuss the Fed's communication strategy and address inflation concerns.