US stock futures are trading lower heading into the Wall Street session on Tuesday after the sell off of US Treasuries slowed.
|Me: DJI||DOW JONES AVERAGES||31535.51||+603.14||+ 1.95%|
|SP500||S&P 500||3901.82||+90.67||+ 2.38%|
|I: COMP||NASDAQ COMPOSITE INDEX||13588.828646||+396.48||+ 3.01%|
Overnight, the Wall Street benchmark S&P 500 index rose 2.4%, recouping most of its losses from last week.
That came after a US Treasury sell-off declined. That helped allay investor concerns that the cost of borrowing could rise, putting downward pressure on the US economic recovery.
BITCOIN BUYERS PUNISHED FOR BOND YIELDS EMERGEDOn Wall Street, the S&P 500 rose to 3,901.82 in its biggest daily gain since June 5. The Dow Jones Industrial Average gained 2% to 31,535.51. The Nasdaq composite rose 3% to 13,588.83. The 10-year Treasury yield, or the difference between its market price and the payment if an investor holds it to maturity, fell to 1.43% after reaching its highest level in more than a year last week.
Stocks fell in late February after a rapid rise in bond yields, caused by a drop in their market price, fueled concerns about higher inflation. The yield on the 10-year Treasury note rose as much as 1.5%. It was at 1.41% on Tuesday.
Bond yields influence rates on mortgages and other loans.
They have risen as investors bet coronavirus vaccination efforts would get economic growth back on track. That fueled concerns about inflation and led investors to pull money from equity bonds and other assets that perform better when consumer prices rise.
Investors are looking for more information on the US economic outlook when Federal Reserve officials make speeches this week. Lael Brainard, an advocate for looser monetary policies, will give a monetary policy speech Tuesday and Fed Chairman Jerome Powell will speak Thursday.
BANK RALLY IN DANGER OF HITTING THE SKATES
They are also watching Washington after the House of Representatives approved President Joe Biden’s $ 1.9 billion financial aid package early Saturday and sent it to the Senate. It includes one-time payments to the public and helps businesses and local governments in difficulty.
Johnson & Johnson rose 0.5% after the Food and Drug Administration approved the company’s coronavirus vaccine, one that doesn’t require extremely cold refrigeration like those made by Moderna and Pfizer.
Meanwhile, Asian stock markets fell on Tuesday after Wall Street rose on a wave of investor concern about possible higher interest rates.
Tokyo, Shanghai, Hong Kong and Sydney declined. Seoul advanced.
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“Asian markets appear to be taking a breather this morning, having led the global equity rally yesterday,” Oanda’s Jeffrey Halley said in a report.
Also on Tuesday, Australia’s central bank kept its policy unchanged at its March meeting.
Meanwhile, Japan reported that employment increased despite a state of emergency to cope with the new coronavirus outbreaks and South Korea reported higher industrial production.
The Shanghai Composite Index lost 1.5% to 3,497.78 and the Nikkei 225 in Tokyo was down 0.9% to 29,384.85. The Hang Seng in Hong Kong was down 1.5% to 29,020.46.
The Kospi in Seoul advanced 0.4% to 3,024.16 after the government reported that the factory’s production rose 7.5% better than expected in January from a year earlier, down from 2.5 % from December.
The S & P-ASX 200 in Sydney lost 0.4% to 6,762.30. India’s Sensex opened 0.4% at 50,021.56. The New Zealand and Southeast Asian markets were up.
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In energy markets, benchmark US crude fell 79 cents to $ 59.85 a barrel in e-commerce on the New York Mercantile Exchange. The contract sank 86 cents to $ 60.64 on Monday. Brent crude, used to price international oil, fell 81 cents to $ 62.88 a barrel in London. It fell 73 cents the previous session to $ 63.69 a barrel.
The dollar advanced to 106.85 yen from 106.81 yen on Monday. The euro fell to $ 1.2021 from $ 1.2047.