Good morning. The S&P 500 fell 2.2 per cent yesterday, after it was revealed US export controls would restrict Nvidia’s sales. Info tech shares fell hard, as investors priced in the possibility of new artificial intelligence restrictions; the Philadelphia Semiconductor index fell 4.1 per cent, with losses for all 30 of its constituents, led by Advanced Micro Devices (down 7.4 per cent) and ASML (down 7 per cent). Email me: aiden.reiter@ft.com.
Treasury yields and the term premium
Of all the ruckus in markets over the past few weeks, the most concerning part was the rapid rise in Treasury yields, and the momentary positive correlation between equity and Treasury prices. Indeed, by most accounts, this was what caused President Donald Trump to initiate the 90-day pause on tariffs.