U.S. stock futures were a tad firmer on Monday, but caution prevailed as bond yields rose and traders looked ahead to Wednesday’s Fed comments.How are stock-index futures trading
S&P 500 futures
ES00,
+0.08%
rose 6 points, or 0.1% to 4504
Dow Jones Industrial Average futures
YM00,
+0.04%
added 41 points, or 0.1% to 34968
Nasdaq 100 futures
NQ00,
+0.15%
gained 25 points, or 0.2% to 15417
On Friday, the Dow Jones Industrial Average
DJIA
fell 289 points, or 0.83%, to 34618, the S&P 500
SPX
declined 55 points, or 1.22%, to 4450, and the Nasdaq Composite
COMP
dropped 218 points, or 1.56%, to 13708.
What’s driving markets Stocks were struggling to rebound from their latest sharp sell-off as benchmark bond yields inched back towards 16-year highs and investors eyed a busy week of central bank action. The S&P 500 dropped 1.2% on Friday after recent stronger-than-expected economic news alongside rising oil prices raised concerns that inflation may stay stubbornly above the federal Reserve’s 2% target. Treasurys were reflecting these concerns, with 10-year implied borrowing costs
BX:TMUBMUSD10Y
climbing to 4.353%, a fraction off their highest since 2007. U.S. crude futures
CL.1,
+0.61%
traded above $91 a barrel, the most expensive since last November. “Investors are increasingly concerned that the latest flurry of data points to firming inflation and perhaps a higher-for-longer rate environment that could weigh on the heavily Mega CAP Tech concentrated S&P 500 Index,” said Stephen Innes, managing partner at SPI Asset Management. A clue to how central banks view these developments will be provided during the week. The Federal Reserve will deliver its policy decision midweek, followed by the Bank of England on Thursday and the Bank of Japan Friday, local dates. “The Fed decision on Wednesday is fully expected to result in a no-change decision, but crucially the accompanying comments should give something of an insight into its current thinking,” said Richard Hunter, head of markets at I …
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