The main headlines of Fox Business Flash are here. Check out what is clicking on FoxBusiness.com.
U.S. stock futures traded higher on Friday hours before the opening bell, after a fall on Thursday, when the yield on the 10-year U.S. Treasury bill increased to 1.72%, the highest since January 2020.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 32862.3 | -153.07 | -0.46% |
| SP500 | S&P 500 | 3915.46 | -58.66 | -1.48% |
| I: COMP. | n / a | n / a | n / a | n / a |
Investors are wavering between hopes that the launch of coronavirus vaccines will allow global business and travel to resume and fears of possible inflation caused by government stimulus spending and easy credit.
The market downturn undermined some of Wednesday’s gains when the S&P 500 and Dow hit historic records after the Federal Reserve said U.S. economic growth should recover to 6.5% this year – the strongest since the 1980s – and inflation will rise above 2% for the first time in years.
IRS ERASES LESS TAX FILES, LESS REFUNDS
President Jerome Powell said the Fed will keep rates low, even as inflation accelerates. Central banks generally try to contain price increases by raising rates. But Fed officials said the US economy would be allowed to “heat up” to avoid hampering the recovery.
Higher yields can make bonds more attractive by taking money out of stocks, especially the high-tech giants that spurred the market’s recovery last year. Apple’s shares fell 3.4%, Microsoft lost 2.7% and Tesla fell 6.9%.
U.S. stock futures traded higher Friday hours before the opening bell, after a fall on Thursday, when the yield on the 10-year U.S. Treasury bill increased to 1.72%, the highest since January 2020. (Courtney Crow / New York Stock Exchange via AP)
The S&P 500 dropped to 3,915.46. The Dow Jones Industrial Average lost 0.5% to 32,862.30. The Nasdaq dropped 409.03 points to 13,116.17.
Bank shares did well because investors bet that higher interest rates would translate into higher profits. Wells Fargo rose 2.4%, Bank of America rose 2.6% and JPMorgan Chase rose 1.7%.
Also on Thursday, the Labor Department said the number of Americans applying for unemployment insurance last week rose to 770,000, well above historical levels.
Meanwhile, Asian stock markets followed Wall Street down on Friday after rising US bond yields dampened buying enthusiasm driven by the Federal Reserve’s pledge of low interest rates.
FORD, GM AND VOLKSWAGEN ACTIONS ARE MANY THANKS TO THE ELECTRIC VEHICLE MANIA
Shanghai, Tokyo, Hong Kong and Sydney all retreated.
The Shanghai Composite Index fell 1% to 3,426.91 and the Nikkei 225 in Tokyo lost 1.2% to 29,851.37. Hang Seng in Hong Kong fell 1.6% to 28,950.83.
The Kospi in Seoul fell 0.6% to 3,047.81 Sydney’s OS & P-ASX 200 dropped 0.6% to 6,705.20.
India’s Sensex opened with a drop of 0.2% at 49,133.92. New Zealand and Singapore won while Bangkok and Jakarta retreated.
Also on Friday, central Japan left its easy monetary policy and inflation target of 2% unchanged, but widened the band in which long-term interest rates could rise or fall around its 0.2 target. % to 0.25%.
GET FOX BUSINESS ON THE MOVE BY CLICKING HERE
In the energy markets, US benchmark oil rose 19 cents to $ 60.25 a barrel in e-commerce on the New York Mercantile Exchange. Brent crude, the basis for international oil prices, added 22 cents to $ 63.50 a barrel in London.
The dollar fell to 108.86 from Thursday’s 109.00. The euro advanced to $ 1.1919 from $ 1.1915.