US stock futures are pointing to a mixed start as bond yields decline

US stock index futures pointed to a mixed start on Thursday, with the hard-hit tech sector feeling some relief from the recent fall in bond yields.

What’s happening
  • Futures on the Dow Jones Industrial Average YM00
    fell 118 points, or 0.4%, to 30353.

  • Futures on the S&P 500 ES00
    fell 7.5 points, or 0.2%, to 3755.

  • Futures on the Nasdaq 100 NQ00
    rose 18.75 points, or 0.2%, to 11585.

On Wednesday, the Dow Jones Industrial Average DJIA
down 47 points or 0.15% to 30483, the S&P 500 SPX
down 5 points or 0.13% to 3760 and the Nasdaq Composite COMP
fell 16 points or 0.15% to 11053.

What moves the markets

Investors are focused on whether the US economy is headed for a recession. Federal Reserve Chair Jerome Powell said on Wednesday that a recession was possible, while sticking to his message that the economy was strong enough to withstand a string of rate hikes.

“The ‘unconditional’ notion that the Fed would be willing to tolerate a recession if ultimately needed to tame inflation was not dismissed,” said Krishna Guha, vice chairman of Evercore ISI.

“But the fact that this has been kept in the background, not in the foreground [on Wednesday] both avoid exposing the Fed to political attacks from the left and confirm that Powell is unwilling to do anything that might prematurely eliminate the possibility of a soft landing, even at the expense of the Fed without Volcker-esque maximum punch through on inflation at this point.”

Powell will be questioned by lawmakers in the House Financial Services Committee on Thursday.

Recent talk of a recession has lifted the yield on 10-year Treasury BX:TMUBMUSD10Y
has fallen closer to 3% from as high as 3.48% earlier this month. Falling yields can help long-term assets like tech stocks and Bitcoin BTCUSD,
who rose in early action Thursday.

US data on weekly jobless claims and the preliminary purchasing managers’ index from S&P Global will be released on Thursday. US stock futures are pointing to a mixed start as bond yields decline

Brian Lowry

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