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U.S. stock futures traded mostly lower ahead of Monday’s Wall Street session as investors awaited the outcome of the Federal Reserve’s policy meeting on Wednesday.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| Ek: DJI | DOW JONES AVERAGE | 32778.64 | +293.05 | + 0.90% |
| SP500 | S&P 500 | 3943.34 | +4.00 | + 0.10% |
| I: COMP | NASDAQ COMPOSITION INDEX | 13319.864652 | -78.81 | -0.59% |
On Friday, a burst of late afternoon helped the S&P 500 0.1% higher to 3,943.34, extending its winning streak to a fourth consecutive day. The Dow Jones industrial average added 0.9% to 32,778.64, increased by industrial stocks such as Boeing and Caterpillar. The technically heavy Nasdaq fell 0.6% to 13,319.86.
OVERVIEW ANGLE OF STOCK PROTECTION PROTECTION OF VOLATILITY IN THE BOND MARKET
The Russell 2000 Index of Smaller Company Shares rose 0.6% to 2,352.79. It ended the week 7.3% higher, surpassing the S&P 500’s 2.6% profit for the week.
The bond market was again the predominant factor in pulling technological stocks mostly down, because as yields cause interest rates to rise higher, they make high-flying stocks appear.
After remaining stable for most of the week, yields on the 10-year treasury note rose to 1.62% from 1.52% a day earlier. Investors sold shares late last week after the yield exceeded the 1.60% point. On Monday, the ten-year treasury was at 1.62%.
US stock futures traded mostly lower ahead of Monday’s Wall Street session as investors await the outcome of the Federal Reserve’s policy meeting on Wednesday. (Courtney Crow / New York Stock Exchange via AP)
The increase in bond yields came when President Joe Biden signed the $ 1.9 billion stimulus plan, which will include $ 1,400 checks for most Americans and additional payments for those with children or those who collected unemployment benefits last year. In a first speech on Thursday, President Biden also outlined a plan to be eligible for all Americans by May 1st.
Wall Street got another sign on Friday that inflation is creeping higher. The Department of Labor said the producer price index, which measures inflation before it reaches consumers, rose 0.5% last month after a record jump of 1.3% the previous month. Over the past year, wholesale prices have risen by 2.8%, the largest 12-month increase at wholesale level in more than two years.
Some economists fear that inflation, which has been dormant for the past decade, could push higher under the extra demand generated by the stimulus package. Others disagree, as there are 9.5 million fewer jobs in the U.S. economy than there were before the pandemic hit a year ago. They claim that unemployment will cover inflation.
Meanwhile, stocks were mixed in Asia on Monday as China reported a variety of data that drew a complicated picture of its recovery from the pandemic.
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The standards rose in Hong Kong and Tokyo, but fell in Shanghai and South Korea.
The implementation of a $ 1.9 billion bailout package for the US economy has boosted investor confidence that the US and the world economy are likely to experience a strong recovery from the pandemic in the second half of the year, but also the inflation rate possibly will increase.
China led the global recovery and reopened earlier than other countries due to the coronavirus closures that occurred in early 2020 in central Wuhan city.
Retail sales rose by almost 36% year-on-year in January-February from a year earlier. But the boom was mostly driven by strong demand for cars, catering and jewelery, suggesting Chinese consumers were struggling during the lunar new year, ING economists said in a report.
The data was exaggerated by the low base effects of the shutdown last year, they said.
Meanwhile, the unemployment rate has risen to 5.5% from 5.2% a year earlier, possibly affected by some striking coronavirus in some areas, analysts said.
‘Travel restrictions weighed retail sales, but increased industrial production and investment. We think the activity will remain strong during the first half of this year, before weakening for the second half, ‘said Julian Evans-Pritchard of Capital Economics in a comment.
‘Domestic policy support is gradually being withdrawn. “Foreign demand for Chinese goods will decline as vaccines begin to reverse the recent shift in global consumption patterns,” he said.
The Shanghai Composite Index fell 1% to 3,419.95. Tokyo’s Nikkei 225 index rose 0.2% to 29,766.97 and Hong Kong’s Hang Seng climbed 0.1% to 28,777.41. In South Korea, the Kospi lost 0.3% to 3,045.71. Sydney’s S & P / ASX 200 fell 0.1% higher to 6,773.00.
India’s Sensex lost 1.8% to 49,859.99.
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The central bank in Japan will also issue a policy update on Friday.
In the other trading session on Monday, standard US crude rose 55 cents to $ 66.16 a barrel in electronic trading on the New York Mercantile Exchange. It lost 41 cents to $ 65.61 a barrel on Friday. Brent crude, the international standard, added 61 cents to $ 69.83 a barrel.
The US dollar rose to 109.19 Japanese yen from 109.02 yen late Friday. The euro fell to $ 1.1919 from $ 1.1949.