U.S. stock futures fell as investors waited for Jerome Powell’s new comments, a day after the Federal Reserve chairman calmed the comments.
Futures linked to the S&P 500 rose 0.2% lower. Dow Jones Industrial Futures also fell 0.2% and futures related to the technology-heavy Nasdaq-100 fell 0.5%.
Stock markets have faltered in recent days after a strong start to the year, with high-level tech companies declining. Investors say a rise in government bond yields, driven by improved growth prospects and rising inflation expectations, has accelerated the upturn in the technological stocks that led the markets higher during the pandemic and the stocks best positioned to take advantage pull out the end of the closures.
“It’s really a function of reopening economies,” said Brian O’Reilly, head of marketing strategy at Mediolanum Investment Funds. ‘Bond yields are rising due to good vaccination rates in the US and the UK, leading to a simple revolution of everything that did well last year, the stay-at-home stocks, to those that did not. shares. ”
“It’s a good story in some ways because the market is trying to price, because economies are going to reopen,” he added.