Categories: Market News

S&P 500 Futures Drop Amidst Climbing Bond Yields Concerns

How Are Stock-Index Futures Trading?

  • S&P 500 futures are down 0.57%.
  • Dow Jones Industrial Average futures are slipping 0.46%.
  • Nasdaq 100 futures are falling 0.66%.

On Tuesday, the Dow Jones Industrial Average dropped 217 points, or 0.55%, to 38,853. The S&P 500 edged up by 1 point, or 0.02%, to 5,306, while the Nasdaq Composite climbed 99 points, or 0.59%, to 17,020.

Futures suggest that U.S. stock indices will open Wednesday’s session lower as Treasury yields hover near four-week highs.

Bonds have experienced fresh sell-offs following two poorly received Treasury auctions on Tuesday. This was compounded by stronger-than-expected consumer confidence data and comments from a Federal Reserve official, indicating that it will take several more months of steady inflation before considering a rate cut.

The likelihood of a September rate cut has fallen below 50%, down from nearly 60% last week.

Concerns over persistently high borrowing costs are contending with optimism about major tech stocks—Nvidia reached a new record on Tuesday—affecting market sentiment, according to Susannah Streeter, head of money and markets at Hargreaves Lansdown.

Financial markets are divided in sentiment, with AI enthusiasm continuing to boost major tech stocks, while concerns about high interest rates keep investors cautious in other areas,” she said.

ABC Trader

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