financetom
Market
financetom
/
Market
/
Futures muted as bond yields rise
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Futures muted as bond yields rise
Apr 8, 2024 3:58 AM

(Reuters) - U.S. stock index futures were flat on Monday as Treasury yields rose on rising bets that the U.S. Federal Reserve could delay interest rate cuts this year.

Hawkish commentary from Fed officials throughout last week and stronger-than-expected manufacturing and jobs reports pointed to a resilient U.S. economy, taking pressure off the Fed to cut interest rates quickly.

Wall Street's main indexes recorded weekly losses on Friday as traders scaled back expectations of the Fed cutting rates in June. They now see a 48% chance of the first rate cut in June, as per the CME FedWatch Tool, down from about 58% seen at the start of last week.

The market has also pared back expectations for rate cuts to fewer than three this year, from three to four a few weeks ago, according to LSEG data.

The yield on 10-year notes rose 4.45% to its highest level since November, pressuring equities. [US/]

Investors will be watching for comments from Chicago Fed President Austan Goolsbee and his Minneapolis counterpart Neel Kashkari later in the day.

The focus will also be on the March reading of U.S. consumer price inflation (CPI), due later in the week, that is expected to show a rise in headline inflation to 3.4% year-on-year from 3.2% in Feb.

Also on the radar would be the release of minutes from the Fed's latest meeting, where it stuck to its guidance of three rate cuts this year.

First-quarter earnings season will pick up pace this week, with banking giants JPMorgan Chase & Co, Citigroup and Wells Fargo & Co scheduled to report in the back-end of the week.

Asset manager BlackRock and Delta Air Lines will also report their quarterly numbers this week.

At 5:38 a.m. ET, Dow e-minis were down 19 points, or 0.05%, S&P 500 e-minis were down 4.75 points, or 0.09%, and Nasdaq 100 e-minis were down 9.25 points, or 0.05%.

Tesla jumped 3.4% in trading before the bell after CEO Elon Musk said the company will unveil Robotaxi on Aug. 8.

Cryptocurrency and blockchain-related stocks advanced tracking rising bitcoin prices. Exchange operator Coinbase Global, crypto miner Marathon Digital and software firm MicroStrategy added between 5.7% - 11.9%.

U.S.-listed shares of Taiwan Semiconductor Manufacturing Co (TSMC) gained 1.3% after the U.S. Commerce Department said it would award the company's U.S. unit a $6.6 billion subsidy for advanced semiconductor production in Phoenix, Arizona.

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Anil D'Silva)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Exchange-Traded Funds, Equity Futures Lower Pre-Bell Monday Amid Declining Rate Cut Hopes
Exchange-Traded Funds, Equity Futures Lower Pre-Bell Monday Amid Declining Rate Cut Hopes
Jan 13, 2025
08:20 AM EST, 01/13/2025 (MT Newswires) -- The broad market exchange-traded fund SPDR S&P 500 ETF Trust ( SPY ) was down 0.6% and the actively traded Invesco QQQ Trust (QQQ) retreated 0.9% in Monday's premarket activity, amid declining hopes of substantial rate cuts this year. US stock futures were also lower, with S&P 500 Index futures down 0.7%, Dow...
Sector Update: Tech
Sector Update: Tech
Jan 13, 2025
08:44 AM EST, 01/13/2025 (MT Newswires) -- Technology stocks fell premarket Monday with the Technology Select Sector SPDR Fund (XLK) down 1.1% and the SPDR S&P Semiconductor ETF (XSD) 2% lower recently. Taiwan Semiconductor Manufacturing ( TSM ) has started producing advanced four-nanometer chips for US customers at its facility in Arizona, Reuters reported Friday, citing Commerce Secretary Gina Raimondo....
US STOCKS-Futures slide as investors dial back bets on Fed rate cuts this year
US STOCKS-Futures slide as investors dial back bets on Fed rate cuts this year
Jan 13, 2025
(For a Reuters live blog on U.S., UK and European stock markets, click/ or type LIVE/ in a news window.) * Moderna ( MRNA ) slides after cutting 2025 sales forecast * Chip stocks fall as US tightens grip on AI chip flows * Futures off: Dow 0.25%, S&P 500 0.77%, Nasdaq 1.16% (Updates with analyst comment) By Johann M...
US Equity Futures Decline on Diminished Rate-Cut Expectations
US Equity Futures Decline on Diminished Rate-Cut Expectations
Jan 13, 2025
08:35 AM EST, 01/13/2025 (MT Newswires) -- Traders' diminished expectations of future rate cuts drove US equity futures lower Monday before the opening bell. Dow Jones Industrial Average futures were off 0.1%, S&P 500 futures were down 0.6%, and Nasdaq futures were 0.9% lower on the first trading day following the December US jobs report, which showed better-than-expected employment numbers...
Copyright 2023-2026 - www.financetom.com All Rights Reserved