News

Inventory futures are rising barely as Wall Avenue tries to shake huge tech’s downtrend

inventory-futures-are-rising-barely-as-wall-avenue-tries-to-shake-huge-techs-downtrend

US stock futures rose slightly on Monday evening after tech stocks fell sharply earlier in the week.

Futures linked to the Dow Jones Industrial Average gained 49 points, or 0.2%. Those for the S&P 500 and Nasdaq 100 rose 0.2% and 0.1%, respectively.

The movement of the futures occurs after a session on Monday, which is characterized by large differences in the market sectors. The tech-heavy Nasdaq Composite was down 2.5% while the Dow was up a modest 27 points. Travel stocks, including airlines and cruise lines, rose sharply across the board, but Apple and Tesla fell.

The broader market closed lower as the S&P 500 fell 0.7% for the fifth straight year. The decline was due to US Treasury bond yields climbing again, driven by a fall in bond prices. The 10-year Treasury yield was above 1.36% on Monday after starting the year below the 1% mark.

“The higher government bond yields rise, the faster investors are moving from soaring technology stocks to stocks in the Russell 2000 Index and the Dow Jones Industrial Average,” said Edward Moya, senior market analyst at OANDA, in a note.

The bond market is likely to remain a key topic of discussion on Tuesday as Fed Chairman Jerome Powell begins his two-day Congressional hearings. The central banker was firmly convinced that the Fed was not considering raising the key rate, but Powell’s comments are being watched closely for any insight into the economy’s inflation outlook.

Fears of inflation have risen in recent weeks as policymakers debated another round of economic relief as Covid cases decline with the introduction of vaccines. The US exceeded 500,000 deaths from the virus on Monday, according to Johns Hopkins University.

Investors will also receive new data on consumer confidence and property prices on Tuesday. Retailers Home Depot and Macy’s will report their profits before the opening bell.

0 Comments
Share

Katherine Clark