US futures fall as rising Treasury yields shake nerves

US futures fall as rising Treasury yields shake nerves

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Dow Jones futures fell more than 200 points as U.S. stocks fell into the red on Wednesday, after a rise in Treasury yields worried investors who were already wondering whether recent data would move stocks. things about interest rates.

Futures for the Dow Jones Industrial Average (YM=F) and S&P 500 (ES=F) both fell 0.6%, after a lackluster session. Contracts on the Nasdaq 100 (NQ=F) fell about 0.7%.

Stocks are selling off as investors eye a rise in U.S. bond yields after a failed public debt auction, reflecting fears that the Federal Reserve will keep rates high for longer. Those concerns appear to overshadow AI growth hopes that have lifted the Nasdaq to a record high in the wake of Nvidia’s (NVDA) post-earnings rally.

The five-year Treasury yield rose to a four-week high on Tuesday, while the 10-year yield (^TNX) rose above the key level of 4.5%. On Wednesday, the benchmark yield rose further to trade around 4.56%.

Investors are trying to understand what Tuesday’s stronger-than-expected consumer sentiment reading means for Fed policymaking, but they are bracing for a long wait before a change in course toward a rate cut after a litany of warnings from its officials.

Learn more: How does the labor market affect inflation?

The release of the Fed’s Beige Book later Wednesday could shed more light ahead of Friday’s reading of the PCE, the central bank’s preferred inflation gauge.

Live1 update

  • The economic outlook is improving…

    And who doesn’t want sunny, positive macroeconomic data on this hump day? Not that guy, always looking for optimistic things.

    I come armed with a dose of this.

    More than eight in ten chief economists expect the global economy to strengthen or remain stable this year, according to a new survey from the World Economic Forum (WEF). This is almost double the proportion indicated in the January report.

    The share of those predicting a slowdown in global economic conditions fell to 17%, down from 56% in January.

    Inflation could still have room to slow, according to a new study from the World Economic Forum.Inflation could still have room to slow, according to a new study from the World Economic Forum.

    Inflation could still have room to slow, according to a new study from the World Economic Forum. (World Economic Forum)

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