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US STOCKS-Futures muted as bond yields rise
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US STOCKS-Futures muted as bond yields rise
Apr 8, 2024 3:38 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

*

Futures down: Dow 0.05%, S&P 0.09%, Nasdaq 0.05%

April 8 (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.

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 ( JPM ), Citigroup ( C/PN )

and Wells Fargo & Co ( WFC ) scheduled to report in the back-end

of the week.

Asset manager BlackRock ( BLK ) and Delta Air Lines ( DAL )

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 ( COIN ), crypto miner Marathon Digital ( MARA ) and

software firm MicroStrategy ( MSTR ) added between 5.7% - 11.9%.

U.S.-listed shares of Taiwan Semiconductor Manufacturing Co ( TSM )

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)

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