The stock index futures contract was lower on Friday, with technology-related stocks likely to decline as bond yields continue to rise, a day after the Dow Jones Industrial Average and S&P 500 closed on records.
What do important criteria do?
-
Futures on the Dow Jones Industrial Average YM00,
+ 0.14%
rose 63 points, or 0.2%, to 32,431. -
S&P 500 futures ES00,
-0.37%
decreased by 9.30 points or 0.2% to 3,918. -
Nasdaq-100 futures NQ00,
-1.44%
fell 151.75 points, or 1.2%, to 12,887.25.
The Dow DJIA,
increased 188.57 points, or 0.6%, to 32,485.59 on Thursday, building on the previous session’s record, while the S&P 500 SPX,
recorded its first record since February 12, rising 1% to 3,939.34. The Nasdaq Composite COMP,
jumped by 2.5%.
What drives the market?
A setback in technology-related stocks sent stocks higher, but a renewed rise in treasury yields early Friday, with the rate on the 10-year note TMUBMUSD10Y,
with more than 8 basis points to trade more than 1.61%, the shares would return growth-oriented shares at the last time of the week.
Must know: Here’s how far the Nasdaq can fall if the yield on bonds reaches 2%
It was a volatile week for equities, including the Nasdaq, which saw more than 2% gains or losses in three sessions.
“We believe that the recent volatility in equities is likely to continue as investors seek to balance growing optimism with higher inflation concerns,” Mark Haefele, chief investment officer of UBS Global Wealth Management, said in a statement.
“But while we expect conditions to remain volatile, the most recent developments point to three of the key market drivers – stimulus, pandemic news and inflation data – on further upward stocks,” he said.
President Joe Biden on Thursday signed a $ 1.9 billion aid package to COVID-19. In a televised speech Thursday night, Biden promised that by May 1, all adults would be eligible for vaccinations.
The combination of aggressive fiscal spending and progress with vaccine deployment spurs economic growth, but it can also cause inflation, at least in the short term.
Analysts said technology stocks could also be vulnerable to pressure after China’s market regulator said on Friday it had imposed fines on some of the country’s largest technology companies.
Bloomberg also reported that the Biden government had notified some suppliers of the Huawei Technologies Co. in China that it would impose conditions on previously approved export licenses, and exclude items for use in or with 5G devices.
Meanwhile, US inflation at the wholesale level for February, the producer price index rose by 0.5%, as expected. Excluding volatile food and energy prices, it rose by 0.2% for the month, according to Econoday, compared to expectations for a rise of 0.3%. On an annual basis, the core PPI index rose by 2.2% over the past year, up from 2% in the previous month.
The University of Michigan’s preliminary consumer sentiment index for March is at 10:00 am East. It is expected to rise to 78.9 from a February reading of 76.8.
Which companies are in focus?
-
Shares of Ulta Beauty Inc.
ULTA,
-9.81%
fell more than 8% in pre-trading after reporting lower sales and profit in the fourth quarter over the year late Thursday. It also announced that CEO Mary Dillon will be replaced by the company’s president, David Kimbell. -
GoodRx Holdings Inc.
DDRX,
-11.63%
Shares fell 4.8% after the healthcare company reported adjusted earnings that were above Wall Street’s expectations, but were lower in the first quarter. -
DocuSign
DOCU,
-5.51%
was under pressure in trading the market even after the electronic verification company issued a better-expected quarterly outlook in its most recent quarterly report. -
Novavax
NVAX,
+ 9.44%
says the COVID vaccine is effective against variants of the deadly virus. -
Shares of GameStop Corp.
GME,
+ 4.43%
on Friday, after a 1.9% drop in the previous session, on an otherwise mixed morning for other meme stocks rose 3.9% in trading on the first market. -
Boeing Co.. BA,
+ 1.39%
has received an order from a private investment firm 777 Partners to buy 24,737 MAX aircraft with an option to buy another 60, according to a Reuters report.
How are other assets doing?
-
The ICE US Dollar Index DXY, a measure of the currency against a basket of six major competitors, rose 0.5%.
-
Oil futures traded slightly lower, with US benchmark CL.1 falling less than 01% to $ 65.97 a barrel. Gold futures GC00 fell $ 18.70, or 1.1%, to $ 1,703.90 an ounce on Comex.
-
The pan-European Stoxx 600 Europe index SXXP traded 0.4% lower and the London FTSE 100 UKX was barely in a positive area, with less than 0.1%.
-
In Asia, Hong Kong’s Hang Seng Index HSi fell 2.2%, Shanghai’s SHCOMP Composite Index rose 0.5%, China’s CSI 300 000300,
+ 0.35%
rose 0.4%, while Japan’s Nikkei 225 index NIK rose 1.7%. -
Bitcoin prices BTCUSD,
-3.04%
was down 4% at $ 55,506 trading on CoinDesk.