U.S. stock index futures were mostly higher Thursday, with the Nasdaq leading the way after upbeat results from Taiwan Semiconductor Manufacturing Company.What’s happening
Dow Jones Industrial Average futures
YM00,
-0.19%
fell 77 points, or 0.2%, to 37,381.
S&P 500 futures
ES00,
+0.32%
rose 15.50 points, or 0.3%, to 4,786.75.
Nasdaq-100 futures
NQ00,
+0.75%
added 118.50 points, or 0.7%, to trade at 16,988.25.
On Wednesday, the Dow
DJIA
fell 94 points, or 0.3%, the S&P 500
SPX
Nasdaq Composite
COMP
each shed 0.6%.
What’s driving markets The S&P 500 has endured a choppy start to the year, pulling back from near-record highs as investors pared expectations of interest rate cuts in coming months, forcing implied borrowing costs higher in the process. The 10-year Treasury yield
BX:TMUBMUSD10Y
by midweek had jumped more than 30 basis points from its December 27 low of 3.8%, after central bank officials pushed back against bets on interest rates cuts, and with its latest surge coming in response to stronger-than-expected U.S. retail sales data on Tuesday. “The recent very strong correlation between bonds and equities that started bearishly for both in August around the QRA (quarterly refunding announcement) and flipped bullish in October around the QRA, has flipped bearish again in 2024,” said Jim Reid, strategist at Deutsche Bank. “History tells us the tight correlation won’t last forever, and one will break out from the other, but for now the relationship is lockstep and yesterday was another day where both sold off as investors dialed back the prospect of near-term rate cuts,” Reid added. Treasury yields popped higher after data showed the number of Americans who applied for first-time unemployment benefits last week fell to 187,000 to the lowest in 16 months, showing that layoffs remain near record lows. Economists had forecast new claims in the week ending Jan. 13 to total 208,000. Also helping U.S. futures stabilize on Thursday was a better performance from Asian trading. Concerns about the health of China’s economy saw Hong Kong’s Hang Seng
HK:HSI
on Wednesday plunge 3.7% to its lowest since October 2022, but the new session saw the index rally 0.75%, with the mainland’s Shanghai Composite
CN:SHCOMP
also recovering some poise with a 0.4% gain. Further good news came from Taiwan Semiconductor Manufacturing Company
2330,
+1.20%
TSM,
+1.26%,
which produced results that beat analysts forecasts — an outcome that may provide particular support to the tech-rich Nasdaq Composite index later in the U.S.
…
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Dow Jones Industrial Average futures
YM00,
-0.19%
fell 77 points, or 0.2%, to 37,381.
S&P 500 futures
ES00,
+0.32%
rose 15.50 points, or 0.3%, to 4,786.75.
Nasdaq-100 futures
NQ00,
+0.75%
added 118.50 points, or 0.7%, to trade at 16,988.25.
On Wednesday, the Dow
DJIA
fell 94 points, or 0.3%, the S&P 500
SPX
Nasdaq Composite
COMP
each shed 0.6%.
What’s driving markets The S&P 500 has endured a choppy start to the year, pulling back from near-record highs as investors pared expectations of interest rate cuts in coming months, forcing implied borrowing costs higher in the process. The 10-year Treasury yield
BX:TMUBMUSD10Y
by midweek had jumped more than 30 basis points from its December 27 low of 3.8%, after central bank officials pushed back against bets on interest rates cuts, and with its latest surge coming in response to stronger-than-expected U.S. retail sales data on Tuesday. “The recent very strong correlation between bonds and equities that started bearishly for both in August around the QRA (quarterly refunding announcement) and flipped bullish in October around the QRA, has flipped bearish again in 2024,” said Jim Reid, strategist at Deutsche Bank. “History tells us the tight correlation won’t last forever, and one will break out from the other, but for now the relationship is lockstep and yesterday was another day where both sold off as investors dialed back the prospect of near-term rate cuts,” Reid added. Treasury yields popped higher after data showed the number of Americans who applied for first-time unemployment benefits last week fell to 187,000 to the lowest in 16 months, showing that layoffs remain near record lows. Economists had forecast new claims in the week ending Jan. 13 to total 208,000. Also helping U.S. futures stabilize on Thursday was a better performance from Asian trading. Concerns about the health of China’s economy saw Hong Kong’s Hang Seng
HK:HSI
on Wednesday plunge 3.7% to its lowest since October 2022, but the new session saw the index rally 0.75%, with the mainland’s Shanghai Composite
CN:SHCOMP
also recovering some poise with a 0.4% gain. Further good news came from Taiwan Semiconductor Manufacturing Company
2330,
+1.20%
TSM,
+1.26%,
which produced results that beat analysts forecasts — an outcome that may provide particular support to the tech-rich Nasdaq Composite index later in the U.S.
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