Evening Edge: Weak 5-year auction lifted rates; cloud and AI earnings set tomorrow's trade
• Stocks drifted while rates rose after a weak 5-year Treasury auction. • After hours: Salesforce, Snowflake, Marvell and HP reported results.
What Moved Today
Market Recap — The Treasury sold $70.0 bn of 5-year notes at 4.182%, leaving a small 0.10 bp tail and a 2.34 bid-to-cover that pressured intermediate yields ($ZF=F, $IEI). That print supported higher Treasury yields intraday and weighed on duration-sensitive equities. After the close a slate of tech and semiconductor reports — led by cloud software and AI-data-center names — dominated tape into the evening ($CRM, $SNOW).
Intraday — At 13:00 ET the $70.0 bn 5-year auction came through with a 4.182% high yield, above the prior 3.955% and roughly in line with recent demand metrics, nudging 5-year futures and intermediate ETFs wider ($ZF=F, $IEI). Markets digested the higher term premium while equities traded around that rates impulse into the close.
After Hours — Salesforce reported revenue of $11.13 bn and non-GAAP EPS $3.88 with FY revenue guidance $45.90–46.20 bn, Snowflake posted $1.39 bn revenue and raised FY product revenue to $5.84 bn, Marvell printed $2.418 bn revenue and gave Q2 guide for $2.700 bn, and HP reported $14.40 bn revenue and non-GAAP EPS $0.86; these releases set the tone for sector re-pricing ($CRM, $SNOW, $MRVL, $HPQ).
Our Read — Higher intermediate yields increase sensitivity for growth and long-duration software multiples, making cloud earnings reactions a clear short-term driver. Watch AI semiconductor guidance and cloud revenue beats/raises to steer sector positioning into tomorrow.
