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U.S. stock futures traded higher hours ahead of the opening clock on Friday after falling back on Thursday when yields on the ten-year U.S. treasury note rose to 1.72%, the highest since January 2020.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| Ek: DJI | DOW JONES AVERAGE | 32862.3 | -153.07 | -0.46% |
| SP500 | S&P 500 | 3915.46 | -58.66 | -1.48% |
| I: COMP. | after | after | after | after |
Investors are swinging between the hope that the introduction of coronavirus vaccines could resume global business and travel, and the fear of possible inflation caused by government stimulus spending and easy lending.
The downturn in the market undermined some of Wednesday’s gains, as the S&P 500 and Dow hit an all-time high after the Federal Reserve said U.S. economic growth should recover to 6.5% this year – the strongest since the 1980s – and inflation will climb above 2% for the first time in years.
IRS AVOID LESS TAX RETURN, LOWEST REFUND
Jerome Powell, chairman, said the Fed would keep rates low even as inflation accelerated. Central banks usually try to limit price increases by raising rates. But Fed officials said the U.S. economy would be allowed to “warm up” to prevent the recovery from derailing.
Higher returns could make bonds more attractive by pulling money out of stocks, especially high-tech giants that recovered the market last year. Apple shares fell 3.4%, Microsoft lost 2.7% and Tesla fell 6.9%.
US futures futures traded higher hours ahead of the opening bell on Friday after falling back on Thursday as yields on the ten-year US Treasury note rose to 1.72%, the highest since January 2020. )
The S&P 500 dropped to 3,915.46. The Dow Jones industrial average lost 0.5% to 32,862.30. The Nasdaq slipped 409.03 points to 13,116.17.
Bank shares performed well because investors bet that interest rates would mean higher profits. Wells Fargo was up 2.4%, Bank of America was up 2.6% and JPMorgan Chase was up 1.7%.
The Department of Labor also said Thursday that the number of Americans who submitted unemployment benefits last week rose to 770,000, well above historic levels.
Meanwhile, Asian stock markets followed Wall Street lower on Friday after rising US bond yields dampened buying enthusiasm through the Federal Reserve’s promise of low interest rates.
FORD, GM AND VOLKSWAGEN SHARES ARE HOT THANK YOU TO ELECTRIC VEHICLE
Shanghai, Tokyo, Hong Kong and Sydney withdrew.
The Shanghai Composite Index fell 1% to 3,426.91 and the Nikkei 225 in Tokyo lost 1.2% to 29,851.37. Hong Kong’s Hang Seng fell 1.6% to 28,950.83.
The Kospi in Seoul gave up 0.6% to 3,047.81 in Sydney’s S&P ASX 200 by 0.6% to 6,705.20.
India’s Sensex fell 0.2% to 49,133.92. New Zealand and Singapore won while Bangkok and Jakarta withdrew.
Also on Friday, the central capital of Japan left its easy monetary policy and inflation target of 2% unchanged, but the band in which long-term interest rates are allowed to rise or fall to its target, to 0.25% from 0.2% , widened.
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In energy markets, standard US crude rose 19 cents to $ 60.25 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the base for international oil prices, added 22 cents to $ 63.50 a barrel in London.
The dollar declined from 109.00 to 108.86 from Thursday. The euro rose from $ 1.1915 to $ 1.1919.