Equities rise with tech boost and yields fall with oil prices

On Tuesday, global equities rose as investors anticipated economic data and awaited Nvidia's financial results, while bond yields fell and oil prices declined following a U.S. threat to expand sanctions against Iran. U.S. 10-year and 30-year bond yields experienced a second consecutive day of declines as traders considered the impact of U.S. Treasury Secretary Scott Bessent's recent decision to expand Treasury buybacks.

Bessent had previously warned countries to reduce financial ties with Iran or face secondary sanctions. However, oil prices dropped to a one-week low as traders perceived economic concerns to pose less of a threat to oil supplies than military escalation. Wall Street's technology sector was expected to recover some of Monday's losses after Nvidia's second-quarter results were released the following day.

Tim Ghriskey, a senior portfolio strategist at Ingalls & Snyder, noted that Nvidia's upcoming results were a significant factor in the recent strength of the technology sector. The strategist also observed that Treasury yields were moving in the opposite direction compared to previous trends, which was positive for the stock market.

The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all experienced gains, with MSCI's global equities gauge increasing 0.27%. Energy markets saw crude oil prices falling 3.05%, while gold prices experienced a slight decline ahead of the release of the U.S. Federal Reserve's preferred gauge of inflation.