Former Congressional Budget Office director Doug Holtz-Eakin discusses the potential impact of President Biden’s infrastructure bill.
U.S. stock futures were lower Tuesday as bond yields reached a 14-month high ahead of President Biden later this week unveiling his $3 trillion infrastructure package.
Dow Jones Industrial Average futures were down 29 points, or 0.09%, while S&P 500 futures and Nasdaq futures were lower by 0.24% and 0.69%, respectively. The losses have the Dow on track to open just below Monday’s record-high close as the major averages contend with the benchmark 10-year yield ticking above 1.77% to a level last seen in January 2020.
In stocks, climbing bond yields weighed on mega-cap technology stocks with Apple Inc., Microsoft Corp. and Tesla Inc. among the laggards.
Meanwhile, financials outperformed as the rise faster rise in longer-dated bond yields steepened the yield curve.
However, Credit Suisse AG and Nomura Holdings Inc. remained under pressure after both said on Monday that they would suffer substantial losses due to the hedge fund Archegos Capital Management needing to unwind billions of dollars of positions.
Elsewhere, PayPal Holdings Inc. will launch in the coming months launch a cryptocurrency checkout service for U.S. customers that will convert digital coins into fiat currency that can be used to make purchases.
In commodities, West Texas Intermediate crude oil fell $1.07 to $60.49 per barrel as the Suez Canal reopened following the refloating of the container ship Ever Given and gold tumbled $25.60 $1,689 per ounce.
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Overseas markets rallied with Germany’s DAX 30 trading up 0.61%, France’s CAC 40 advancing 0.45% and Britain’s FTSE 100 ticking higher by 0.07%.
In Asia, Hong Kong’s Hang Seng index gained 0.84%, China’s Shanghai Composite added 0.62% and Japan’s Nikkei 225 rose 0.16%.
