The rebound in US Treasury yields weighed on the broader market, while memory chips bucked the trend to strengthen; Moderna saw a significant pullback.

Overnight, the three major US stock indices closed lower collectively: the Dow Jones Industrial Average (DJI) fell 1.32%, the S&P 500 (SPX) dropped 0.87%, and the Nasdaq Composite (IXIC) declined 1.00%.

The core pressure stems from the US Treasury market, where long-end Treasuries were sold off again. Yields on the 10-year and 30-year notes rose significantly. Even the Treasury Secretary's indication of a potential expansion in Treasury buyback operations failed to reverse the upward trend in yields, thereby suppressing overall risk appetite.

Extreme divergence in market performance:

1. Sentiment in the pharmaceutical sector waned: Moderna (MRNA), which had surged the previous day, plunged 23.55% as positive news on its cancer vaccine was priced in. The biopharmaceutical sector retreated collectively, highlighting the high volatility of event-driven trading. $Moderna (MRNA.US)$

2. Memory chips bucked the trend with a resilient rebound: Micron Technology (MU) rose 3.97%, SK Hynix ADRs gained over 4%, and Western Digital (WDC), Seagate Technology (STX), and SanDisk also closed higher. Capital is beginning to differentiate within the sector; the high prosperity of HBM remains recognized, while funds are flowing back into conventional memory stocks after their earlier correction. $Micron Technology (MU.US)$$SK hynix (SKHY.US)$

3. Consumer staples leaders stumbled: Walmart (WMT) dropped 9.15% due to revenue growth missing expectations, dragging down the Dow Jones Industrial Average. The Mag 7 generally weakened, with Amazon (AMZN), Apple (AAPL), and Tesla (TSLA) declining, while NVIDIA (NVDA) edged slightly lower.

Key factors to monitor in the near term: the trajectory of US Treasury yields, previews of the Jackson Hole Central Bank Symposium, and subsequent pricing guidance from major memory chip manufacturers.

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