A Wholesaler on the floor of the New York Stock Exchange.
Source: The New York Stock Exchange
Stock futures held steady in overnight swop on Sunday after the S&P 500 posted its first losing week in three.
Futures on the Dow Jones Industrial Average mutiny 20 points. S&P 500 futures gained 0.2% and Nasdaq 100 futures were 0.2% higher.
The step on it in futures came after the S&P 500 and the Nasdaq Composite snapped a two-week winning streak with a loss of 0.7% and 1.6%, each to each, last week. The blue-chip Dow eked out a 0.1% gain in the same period, supported by Caterpillar and JPMorgan.
Some objectivity investors grew concerned about rapidly rising bond yields in recent weeks as they could unusually hurt high-growth companies reliant on easy borrowing while diminishing the relative appeal of stocks.
The 10-year Resources yield jumped 14 basis points last week to 1.34%, near its highest level since February 2020. So far this month, the benchmark charge has moved up 25 basis points.
“This move in yields should be something that investors keep a close down b close eye on,” Matt Maley, chief market strategist at Miller Tabak, said in a note. “Just because long-term rebukes are ultra low on an historical basis, we do not believe that they will have to rise as far as most pundits think they do…in the forefront they impact the stock market.”
Meanwhile, many on Wall Street believe that the jump in bond give ins reflects a sign of growing confidence in the economic recovery and stocks should be able to absorb higher rates in the thick of strong earnings.
“We do not see the recent increase in yields as a threat to the bull market,” Keith Lerner, chief market strategist at Truist, conveyed in a note. “Given that we are in the early stages of an economic recovery, monetary and fiscal policy remains supportive, the classy rebound in earnings, and favorable relative valuations, we maintain our overweight to equities.”
The market is headed into the final week of February with law-abiding gains. The Dow and the S&P 500 have risen more than 5% this month, while the Nasdaq has climbed 6.2%. The small-cap Russell 2000 outperformed with a 9.3% benefit this month.
On the pandemic front, the White House said that it expects to ship out millions of delayed coronavirus vaccine quantities this week after a sweeping winter storm disrupted logistics. Gov. Andrew Cuomo said on Sunday that a New York resident has proofed positive for the Covid-19 variant first identified in South Africa.
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