Global bond yields ease from 5.32% high ahead of Fed minutes

Global bonds stabilized Wednesday as the 30-year Treasury yield eased from a 5.32 percent high and chip stocks steadied ahead of the Fed's July meeting minutes.

"The economy is strong enough" and corporate earnings and cash flows are "strong enough that they'll power through any kind of scare that happens around this," Adam Parker, founder and chief executive of Trivariate Research, told CNBC's "Closing Bell."

The 10-year yield eased about a basis point to 4.69 percent, while gold rose as much as 0.6 percent above $4,360 an ounce after falling nearly 2 percent the previous day. Brent crude held above $91 a barrel as regional tensions escalated. The stabilization follows Tuesday's selloff that pushed the S&P 500 down 0.69 percent to 7,691.76 and the Nasdaq Composite 1.33 percent lower to 26,289.71, with the Philadelphia Semiconductor Index dropping 4.96 percent to 531.39.

The minutes, due at 2 p.m. ET, follow a July meeting where three officials dissented in favor of hiking rates — an unusually sharp split. A Reuters survey found 94 of 104 economists expect the Fed to hold rates steady at 3.50 percent to 3.75 percent in September, with markets pricing roughly a 68 percent chance of no change. Fed Chairman Kevin Warsh speaks at Jackson Hole on Aug. 28.

Chip stocks steady after Tuesday's 5% rout

The Philadelphia Semiconductor Index's 4.96 percent drop Tuesday was its steepest since late July, and the damage spread across Asia. Samsung Electronics and SK Hynix both slid more than 7 percent in Seoul, dragging the Kospi down more than 5.5 percent, while SoftBank Group fell more than 5 percent and Kioxia slid over 9 percent in Tokyo. The MSCI Asia Pacific index fell 2 percent.

The selloff was a referendum on memory-chip demand tied to AI infrastructure, a sector that had fueled a rally just days earlier. Rising yields raise borrowing costs for companies pouring money into AI data centers, prompting investors to question whether that spending pace can hold. In the U.S., Micron Technology fell 7.02 percent to $940.76 after a 198 percent year-to-date run, while Teradyne dropped 8.77 percent to $404.29 and ARM Holdings declined 6.67 percent to $253.32.

What the Fed minutes could reveal

The July meeting's three dissents in favor of hiking rates mark an unusually sharp split that traders will parse for clues about the central bank's next move. Markets have priced roughly a 68 percent chance the Fed holds rates steady at 3.50 percent to 3.75 percent in September, according to a Reuters survey of 104 economists, 94 of whom expect no change.

The 30-year yield's climb to 5.32 percent — its highest since 2007 — was part of a global repricing of long-term debt. Japan's 10-year yield reached its highest in three decades, German 30-year bunds hit levels not seen since 2011, and French 30-year rates climbed to their highest since 2008. Enterprise software offered a countertrend, with monday.com surging 5.65 percent to $88.04 after an earnings beat, while Salesforce rose 2.71 percent and ServiceNow added 1.52 percent.

This article is for informational purposes only and does not constitute investment advice.