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U.S. stock futures are trading lower on Tuesday’s Wall Street session after a US Treasury bond sale slowed.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 31535.51 | +603.14 | + 1.95% |
| SP500 | S&P 500 | 3901.82 | +90.67 | + 2.38% |
| I: COMP | NASDAQ COMPOSITE INDEX | 13588.828646 | +396.48 | + 3.01% |
Overnight, the Wall Street S&P 500 benchmark rose 2.4%, recovering most of last week’s losses.
This was after the sale of US Treasury bonds declined. This helped to ease investor concerns that the cost of borrowing could rise, putting downward pressure on the US economic recovery.
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On Wall Street, the S&P 500 rose to 3,901.82 in its biggest single-day gain since June 5. The Dow Jones Industrial Average gained 2% to 31,535.51. The Nasdaq compound rose 3% to 13,588.83. The 10-year Treasury yield, or the difference between its market price and payment if an investor holds it to maturity, fell to 1.43% after reaching its highest level in more than a year last week.
U.S. stock futures are trading lower in Tuesday’s Wall Street session after a US Treasury bond sale slowed. (Nicole Pereira / New York Stock Exchange via AP)
Stocks fell at the end of February, after a rapid increase in bond yields, caused by a drop in their market prices, fueling concerns about higher inflation. The yield on the 10-year Treasury bill rose to 1.5%. It was at 1.41% on Tuesday.
Bond yields influence rates on mortgages and other loans.
They rose as investors bet that coronavirus vaccination efforts would bring economic growth back on track. This fueled concerns about inflation and prompted investors to withdraw money from bonds and invest in stocks and other assets that do better when consumer prices rise.
Investors are looking for more information on the US economic outlook when Federal Reserve officials make their speeches this week. Lael Brainard, a supporter of more flexible monetary policies, will give a speech on monetary policy on Tuesday and Fed Chairman Jerome Powell will speak on Thursday.
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They are also watching Washington after the House of Representatives approved President Joe Biden’s $ 1.9 trillion economic aid package early on Saturday and sent it to the Senate. It includes one-off payments to the public and helps businesses and local governments in distress.
Johnson & Johnson rose 0.5% after the Food and Drug Administration approved the company’s coronavirus vaccine, which does not require extremely cold refrigeration like those made by Moderna and Pfizer.
Meanwhile, Asian stock markets fell on Tuesday after Wall Street rose, as a wave of investor concern about possible higher interest rates receded.
Tokyo, Shanghai, Hong Kong and Sydney declined. Seoul advanced.
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“Asian markets appear to be taking a deep breath this morning, having led the global stock recovery yesterday,” Jeffrey Halley of Oanda said in a report.
Also on Tuesday, Australia’s central bank left its policy unchanged at its March meeting.
Meanwhile, Japan reported that employment has increased despite the state of emergency to deal with new outbreaks of coronavirus, and South Korea has reported higher factory production.
The Shanghai Composite Index lost 1.5% to 3,497.78 and the Nikkei 225 in Tokyo fell 0.9% to 29,384.85. Hang Seng in Hong Kong decreased 1.5% to 29,020.46.
The Kospi in Seoul advanced 0.4% to 3,024.16 after the government reported that the factory’s production increased 7.5% better than forecast in January compared to the previous year, compared to 2.5% in December.
The S & P-ASX 200 in Sydney was off 0.4% at 6,762.30. India’s Sensex opened 0.4% at 50,021.56. The New Zealand and Southeast Asian markets rose.
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In the energy markets, US benchmark oil dropped 79 cents to $ 59.85 a barrel in e-commerce on the New York Mercantile Exchange. The contract fell 86 cents to $ 60.64 on Monday. Brent oil, used to price international oils, dropped 81 cents to $ 62.88 a barrel in London. It dropped 73 cents in the previous session to $ 63.69 a barrel.
The dollar advanced to 106.85 yen from Monday’s 106.81 yen. The euro fell to $ 1.2021 from $ 1.2047.