Market highlights and 5 ASX small caps to watch on Friday

US stocks dip as Treasury yields spike

US stocks dipped from record highs on Thursday trading in the US, as US treasury yields spiked.

The 10-year benchmark yield surged to 1.73%, rising from 1.68% yesterday.

Despite the signal the Fed is sending, investors feel that rates will have to be increased before 2023 to combat rising inflation. Fed chairman Powell announced yesterday that he would not raise rates before 2023.

The yield spike sent US stocks tumbling.

Blue chip Dow fell 0.46%, S&P500 dropped 1.48%, while tech heavy NASDAQ sank 3.02%.

FAANG stocks, the five biggest US tech stocks, all fell on the higher yields

Bitcoin held steady at US57,700 at 8am AEDT.

Closer to home

The unexpectedly low jobless rate yesterday of 5.8% wasn’t enough to spark the ASX market. The ASX200 index fell by 0.73% on Thursday, and is likely to fall again today following the US.

Crude oil prices tumbled last night on an uncertain demand outlook, with Brent crude falling by as much as 8 per cent. This could put pressure on ASX oil stocks this morning.

5 ASX small caps to watch today

ikeGPS Group (ASX:IKE)
The North American based telco has won a long-term contract with a national communications engineering company in the US, which will generate $0.7 million of revenue per annum. It also announced that Crown Castle International, the largest provider of communications infrastructure for cell towers and fibre in the US, has standardised on the IKE Platform for pole-related 5G and fibre deployment processes.

Blue Energy (ASX:BLU)
The company has executed a non-binding Heads of Agreement (HOA) with Origin Energy Limited (ASX: ORG), for the supply of 300 PJ of gas over 10 years. In December last year, the two companies signed a similar agreement for the delivery of 100 PJ of gas, so this now brings the total gas delivered to 400 PJs.

Calix (ASX:CXL)
Tech play Calix announced that it’s about to enter into ESG projects, after investing in its advanced battery development program. The company has received firm commitments for a placement of $14 million to invest in its battery development program following encouraging results.

Medibio (ASX:MEB)
Mental health tech Medibio said it has signed the first Statement of Works agreement with Compass Group, to begin the implementation of “Ilumen” in the UK. Ilumen is a corporate mental health software product that provides an employer with de-identified and aggregated data to measure and manage the mental wellbeing of its workforce.

Pharmaxis (ASX:PXS)
The pharma company has launched Bronchitol in the US, an add‐on maintenance therapy to improve pulmonary function in cystic fibrosis (CF) patients aged 18 years and older. Bronchitol, developed by Pharmaxis, is the first dry powder inhaled mucoactive agent providing a compact, portable treatment option for CF patients.