Stock contracts lower after US Treasury bond sales fell

U.S. stock futures traded lower after the Wall Street session on Tuesday after easing U.S. Treasury bond sales.

Ticker	Safety	Last	Alter	Alter%
Ek: DJI	DOW JONES AVERAGE	31535.51	+603.14	+ 1.95%
SP500	S&P 500	3901.82	+90.67	+ 2.38%
I: COMP	NASDAQ COMPOSITION INDEX	13588.828646	+ 396.48	+ 3.01%

Wall Street’s standard S&P 500 index climbed 2.4% overnight, recovering most of its losses from the past week.

This happened after sales of US Treasury bonds weakened. This has helped investors’ concerns about rising borrowing costs help put the US economic recovery down.

BITCOIN BUYERS PUNISHED BY STOP BAND INTEREST
On Wall Street, the S&P 500 rose to 3,901.82 with its biggest one-day gain since June 5. The Dow Jones industrial average rose 2% to 31,535.51. The Nasdaq Composition climbed 3% to 13,588.83. The return on the ten-year treasury, or the difference between the market price and the payout if an investor keeps it to maturity, has dropped to 1.43% after reaching its highest level in more than a year last week.

The shares fell at the end of February after a rapid rise in bond yields, caused by a fall in their market price, raised concerns about higher inflation. Yields on the 10-year treasury note climbed to 1.5%. It was 1.41% on Tuesday.

Bond yields affect mortgage rates on other loans.

They climbed as investors bet that the coronavirus vaccine would get economic growth back on track. This has raised concerns about inflation and prompted investors to shift money from bonds to equities and other assets that perform better as consumer prices rise.

Investors are looking for more information on the US economic outlook when Federal Reserve officials deliver speeches this week. Lael Brainard, an advocate for a weakened monetary policy, will give a monetary policy speech on Tuesday, and Fed Chairman Jerome Powell will speak on Thursday.

BANK STOCK IN DANGER TO CLOSE THE SKIDS

They are also watching Washington after the House of Representatives approved Joe Biden’s $ 1.9 billion economic aid package early on Saturday and sent it to the Senate. This includes one-off payments to the public and assistance to struggling businesses and local governments.

Johnson & Johnson rose 0.5% after the Food and Drug Administration approved the company’s coronavirus vaccine, one that does not require extremely cold refrigeration like those made by Moderna and Pfizer.

Meanwhile, Asian stock markets declined on Tuesday after Wall Street rose due to investors’ concerns about possible higher interest rates.

Tokyo, Shanghai, Hong Kong and Sydney declined. Seoul advanced.

GET FOX BUSINESS ON THE GO by clicking here

“Asian markets appear to be taking a breather this morning, leading to a global recovery in equities yesterday,” Oanda’s Jeffrey Halley said in a report.

The Central Bank of Australia also left its policy unchanged at its March meeting.

Meanwhile, Japan reported rising employment despite a state of emergency to deal with renewed coronavirus outbreaks, and South Korea reported higher factory outputs.

The Shanghai Composite Index lost 1.5% to 3,497.78 and the Nikkei 225 in Tokyo fell 0.9% to 29,384.85. The Hang Seng in Hong Kong decreased by 1.5% to 29,020.46.

The Kospi in Seoul rose by 0.4% to 3,024.16 after the government reported that production in January more than a year earlier was 7.5% higher than forecast, compared to 2.5% in December.

The S&P ASX 200 in Sydney was 0.4% lower at 6,762.30. India’s Sensex opened 0.4% at 50,021.56. New Zealand and Southeast Asian markets rose.

CLICK HERE TO READ MORE ABOUT FOX BUSINESS

In the energy markets, standard US crude fell 79 cents to $ 59.85 a barrel in electronic trading on the New York Mercantile Exchange. The contract sank 86 cents to $ 60.64 on Monday. Brent crude, used to price international oils, fell 81 cents to $ 62.88 a barrel in London. It dropped the previous session by 73 cents to $ 63.69 a barrel.

The dollar rose to 106.85 yen from Monday’s 106.81 yen. The euro fell to $ 1.2021 from $ 1.2047.