Stock futures gain as bond yields rise

FAN Editor

U.S. equity futures are trading higher following a day that saw stocks pull back from their recent record highs as bond yields fell and investors turned cautious.

The major futures indexes suggest a gain of 0.3% when the opening bell rings.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Stock are attempting a rebound after the S&P 500 fell 0.9% to 4,320.82, weighed down by a broad slide driven mainly in technology, financial, industrial and communication companies.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 34421.93 -259.86 -0.75%
SP500 S&P 500 4320.82 -37.31 -0.86%
I:COMP NASDAQ COMPOSITE INDEX 14559.784884 -105.28 -0.72%

The Dow Jones Industrial Average lost 0.7% to 34,421.93. The Nasdaq composite snapped a three-day run of closing highs, sinking 0.7% to 14,559.78.

The yield on the 10-year Treasury note is back up to 1.33%. On Thursday it fell to 1.28%

Traders have been shifting money into bonds in recent weeks, pulling down the benchmark yield, which is used to set rates on mortgages and many other kinds of loans.

WORKER SHORTAGE ‘BIGGEST ISSUE’ FACING US ECONOMY THIS SUMMER, CHAMBER OF COMMERCE WARNS

Investors are gauging the potential impact from COVID-19 variants stymying a resurgence in commerce and travel. Fans have been banned from the Tokyo Olympics following a state of emergency aimed at containing rising coronavirus infections in the capital.

On Friday, Tokyo’s Nikkei 225 fell 0.6%, Hong Kong’s Hang Seng index gained 0.9% and China’s Shanghai Composite index lost 0.1%.

Two recent reports showed that the manufacturing and services sectors are still growing in the U.S,, but more slowly than in previous months and below economists’ expectations.

INITIAL JOBLESS CLAIMS UNEXPECTEDLY RISE OFF PANDEMIC LOWS

On Thursday, the Labor Department said the number of Americans filing for unemployment benefits rose slightly last week even while the economy and the job market appear to be rebounding from the coronavirus recession.

Investors are increasingly jittery over potential moves by central banks, especially the U.S. Federal Reserve, to wind down lavish support for markets that cratered at the outset of the pandemic.

Minutes from the Fed’s June meeting showed officials are moving closer to reducing bond purchases, though most analysts don’t expect a reduction until late this year. At that meeting, policymakers said they planned to raise interest rates as soon as 2023, earlier than previously expected.

CLICK HERE TO READ MORE ON FOX BUSINESS

In energy markets, U.S. crude is gaining 50 cents to $73.44 per barrel. Brent crude is higher by 37 cents to $74.47.

The Associated Press contributed to this report.

Free America Network Articles

Leave a Reply

Next Post

2 US men, ex-Colombia soldiers held in Haiti assassination

PORT-AU-PRINCE, Haiti — Seventeen suspects have been detained so far in the stunning assassination of Haiti‘s president, and Haitian authorities say two are believed to hold dual U.S.-Haitian citizenship and Colombia’s government says at least six are former members of its army. Léon Charles, chief of Haiti’s National Police, said […]