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US stock markets fall on bond yields, Microsoft buys Activision

Picture of Drew Meredith, CFP
Drew Meredith, CFP
Picture of Drew Meredith, CFP

Drew Meredith, CFP

Drew Meredith is one of the founders of Wattle Partners. He is an experienced financial and investment adviser with expertise in self-managed superannuation funds, superannuation strategies, investment analysis and portfolio construction. Drew is a Partner at Wattle Partners.
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US stock markets have continued their downward trend overnight in the first day of trading after the long weekend.

All three benchmarks fell, with the Dow Jones dropping 1.5%, the S&P 500 falling 1.6% and the Nasdaq continuing to underperform, down 2.6%.

The main driver was a spike in bond rates, which threaten long-term valuations, with the 10-year jumping to 1.86% and the 2-year moving over 1% for the first time in months.

This came even as China’s President Xi Jinping delivered a targeted speech warning the developed world about hiking rates too soon as it would threaten the economic recovery occurring all around the world.

Microsoft to buy Activision

Among the major news was Microsoft (NASDAQ: MSFT) announcing the acquisition of video game developer Activision Blizzard (NASDAQ: ATVI) in an all-cash deal worth around US$68 billion. Shares in the Call of Duty maker were up over 25% on the news.

Meanwhile, Goldman Sachs (NYSE: GS) fell close to 7% after reporting a 13% fall in profit for the quarter.

Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to follow US markets lower at the open this morning. For all the latest, check out my ASX 200 morning report.

The Golden Rules of Investing

We might be experts in retirement, but with combined financial advice experience of 35+ years, we’ve nearly seen it all. 

In mid-2023, our senior team at Wattle Partners Financial Planning put the finishing touches on a brand-new report “The Golden Rules of Investing“.

In this free report, we outline the key principles that determine all of the portfolio construction and investment decisions of Wattle Partners. Collated over decades, this paper should be seen as a work-in-progress, constantly under review in light of the ever-evolving nature of markets. 

You’ll find the free report on my Author page. Simply click the button below to view the Golden Rules.

Get the golden rules

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At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

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Wattle Partners is a financial advice firm, servicing clients around Australia, specialising in retirement planning (pre and post retirement). 

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