Stocktwits Passport Portfolio: QQQ Holds Up Better Than SPY, DIA And Asian Stocks Amid Bond Market Rout This Week

• U.S. Treasury yields surged to multi-decade highs this week before pulling back on Thursday.
• Asian markets, including China, Japan, Taiwan and South Korea, are also trending lower as soaring energy prices, inflationary concerns and growing interest rate uncertainty weighed on equities.
• The iShares MSCI China ETF (MCHI) was down nearly 1% in a shortened week which extends till Oct. 8 for the Mid-Autumn Golden Week holidays.

Global stock markets are headed for a week in the red as rising bond yields pressure stock markets worldwide. All three benchmark indexes in the U.S. are poised to end the week lower, although tech-heavy Nasdaq is slated for the least decline among all its peers. 

Asian markets, including China, Japan, Taiwan and South Korea, are also trending lower as soaring energy prices, inflationary concerns and growing interest rate uncertainty weighed on equities.

US Markets Vs Asia Markets

The Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, has posted the lowest decline so far this week, bolstered in part by the resilience of major technology stocks and continued strength in the AI-related sector. 

Major chip stocks, including Nvidia Corp. (NVDA), Micron Technology (MU) and Intel Corp. (INTC) are on track to end the week in green. 

Meanwhile, the SPDR S&P 500 ETF Trust (SPY) and the SPDR Dow Jones Industrial Average ETF (DIA) are headed to the red territory this week as rising bond yields and inflationary concerns have pressured the stock market. 

U.S. Treasury yields surged to multi-decade highs this week before pulling back on Thursday. At the time of writing, the 10-year U.S. Treasury yield was trading at 5.256%, marginally below the 5.34% it had previously reached. The 30-year Treasury bond yield was trading at 5.633% at the time of writing.

Among Asian stocks, iShares MSCI Taiwan ETF (EWT) posted the worst decline, sliding nearly 2% lower this week. The iShares MSCI China ETF (MCHI) was down nearly 1% in a shortened week, which extends till Oct. 8 for the Mid-Autumn Golden Week holidays.

The iShares MSCI Japan ETF (EWJ) and iShares MSCI South Korea ETF (EWY) are also on track to end the week lower. 

Global Bond Market Rout

Bond markets across the world have witnessed a broad selloff this week, pushing yields to multi-year and multi-decade highs. 

In the U.S., the 10-year Treasury yield surged to its highest level since 2002, while the 30-year yield reached a 24-year high, before both retreated on Thursday. However, the move pressured equities throughout the week. 

In Japan, the 10-year JGB yield rose to around 3.08%, hovering close to a three-decade high, even as Japanese equity markets contend with a stronger case for further Bank of Japan tightening. 

In China, mainland markets fell sharply earlier in the week as technology stocks retreated and investors worried whether policy support would be enough to revive growth and property demand. 

Taiwan and South Korea have faced pressure from the broader global rate shock and oil-driven inflation concerns, sliding despite experiencing some AI-related strength earlier in the week. 

Meanwhile, Julie Kozack, the IMF's communications director, said at a press briefing on Thursday that globally, "bond markets are continuing to function in an orderly manner."

Retail Stance: US Vs Asia Markets

On Stocktwits, retail sentiment around SPY, QQQ and DIA was in the green territory. 

Meanwhile, retail sentiment around EWT was ‘bullish’ while it was ‘neutral’ for MCHI and EWJ. Sentiment for EWY was ‘bearish’ at the time of writing.  

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