Stock futures fall after S&P 500 hits new low for the year; 10-year Treasury yield briefly tops 4%

CNBC Pro: Credit Suisse Says Now’s the Time to Buy Two Green Hydrogen Stocks — and Prices One More Than 200% Up

Credit Suisse says it’s time to enter the green hydrogen business, with a number of catalysts in place to boost the power of clean energy.

“Green hydrogen is a growing market – we are increasing our 2030 market estimates by [over] 4x,” the bank said, predicting green hydrogen production will increase about 40 times by 2030.

He names two stocks to play the boom – giving a rise of more than 200%.

CNBC Pro subscribers can learn more here.

—Weizhen Tan

US 10-year Treasury yield tops 4% for first time since 2010

CNBC Pro: Asset manager reveals what’s next for stocks — and shares how he’s trading the market

Neil Veitch, chief investment officer at Edinburgh-based SVM Asset Management, says he expects the macro landscape to remain “quite challenging” for the rest of the year.

Speaking to CNBC Pro Talks last week, Veitch named the key drivers that could help the stock market become “more constructive” and shared his views on growth versus value.

CNBC subscribers can learn more here.

— Zavier Ong

Questions over profits and potential recession mean more sales could be ahead

The Dow Jones and S&P 500 have fallen for six straight days, with many seeing large-scale selling typical of so-called “washout” days.

This can sometimes be a counter buy signal on Wall Street, but many investment professionals are skeptical that the sell will end. One reason is that earnings forecasts for next year still show solid growth, which would be unlikely in a recession.

“We know that if we start to see a reversal in 2-year yields…and if we start to see a reversal in the dollar, that gives us the opportunity to rebound from these extremely oversold conditions,” said Andrew Smith, director investments. strategist at Delos Capital Advisors in Dallas. “But I’m having a hard time reconciling in my mind that the earnings story will be as good as expected.”

Additionally, dramatic moves in the bond and currency markets mean “something snapped” and it may be wise to wait for that information to come out, Smith said.

On the positive side, Smith pointed to a strong labor market and signs of continued travel spending as a sign that the US economy may be able to avoid a major recession.

—Jesse Pound

Futures open higher

Stock futures rose slightly after trading began at 6 p.m. Dow futures rose more than 60 points at a time, though those gains have since declined.

Nasdaq 100 futures posted the biggest early jump of three, suggesting the tech could continue to outperform on Wednesday.

—Jesse Pound

S&P 500 hits June low on Tuesday

Although Tuesday’s closing levels showed relatively modest daily moves, the S&P 500 fell below its previous intraday low for the year during the session. The move was seen by many as confirmation that stocks’ summer rally has failed.

The S&P 500 is now 24.3% off its all-time high, and the Dow Jones is also in bearish territory, down about 21.2%. The Nasdaq Composite, whose decline dates back to last November, is 33.2% below its high water mark.

The next key metric for investors in the days ahead could come from the bond market, where the 10-year Treasury yield jumped just below the 4% level.

—Jesse Pound, Christopher Hayes

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