Apple CEO Cook: WWDC Developer Conference Will Focus on Apple Intelligence and Siri

The increasing activity in long-term U.S. Treasury options “very directly” reflects traders’ expectations for a decline in long-term interest rates. Utility stocks have added a new logic due to rising power demand from AI data centers. Historically, whenever U.S. Treasury yields retreat, these two sectors are often the first to benefit and see sharp rebounds. Analysts believe that the battle between high interest rates and the AI frenzy has become the core narrative in the current market.

The 10-year US Treasury yield has reached a 24-year high, quietly reshaping the landscape of the US stock market. The S&P 500 forward price-to-earnings ratio has compressed from 22.2 times at the beginning of the year to 19.3 times, marking a “three-tier decline in valuation.” Meanwhile, the Russell 2000 Index is approaching technical correction territory, while Mag 7 stocks like Microsoft and Nvidia continue to support the broader market with the AI narrative and strong earnings. Market concentration is nearing historic extremes.

Over the past two months, Samsung and SK Hynix have alone absorbed over $25 billion in sell pressure. Now, Samsung Electronics has completed its buybacks ahead of schedule, and SK Hynix is left with only about $500 million to finish up. On their "exit" day, the KOSPI instantly dropped by 2%. More dangerously, Samsung's Q3 results missed expectations for both revenue and profit. Coupled with ETF rebalancing and options expiry, a "liquidity vacuum" has become a reality, leaving the question of who will step in as the biggest mystery.