A trader on the floor of the New York Stock Exchange.
Source: New York Stock Exchange
After the S&P 500 index fell for the third consecutive week, stock futures remained stable in overnight trading on Sunday.
Dow Jones Industrial Average futures were flat. S&P 500 futures and Nasdaq 1
The S&P 500 Index and the Nasdaq Composite Index fell 0.7% and 1.6% respectively after breaking through two weeks of gains last week, which is a boost to the trend of futures. The blue-chip Dow, supported by Caterpillar and JPMorgan, grew 0.1% over the same period.
Some stock investors are concerned about the rapid increase in bond yields in recent weeks because they may particularly hurt high-growth companies that rely on easy borrowing, while weakening the relative attractiveness of stocks.
The 10-year U.S. Treasury bond yield jumped 14 basis points last week to 1.34%, close to the highest level since February 2020. So far this month, the benchmark interest rate has risen by 25 basis points.
Matt Maley, chief market strategist at Miller Tabak, said in a report: “This change in yields should be closely watched by investors. “Just because long-term interest rates They are extremely low on a historical basis, and we believe that they do not have to rise as most experts believe before they affect the stock market. “
At the same time, many people on Wall Street believe that the rise in bond yields reflects people’s increased confidence in economic recovery, and that stocks should be able to absorb higher interest rates from strong returns.
Keith Lerner, chief market strategist at Truist, said in a report: “We don’t think the recent increase in yields will pose a threat to the bull market.” “Given that we are in the early stages of economic recovery, monetary and fiscal The policy is still supportive, earnings have rebounded sharply, and relative valuations are favorable, so we maintain our stock holdings.”
The market entered the last week of February and rose steadily. The Dow Jones and Standard & Poor’s 500 indexes have risen more than 5% this month, while the Nasdaq has risen 6.2%. The small-cap Russell 2000 (Russell 2000) performed well this month, rising 9.3%.
In terms of the pandemic, the White House said it expects to ship millions of doses of the delayed coronavirus vaccine this week as the winter storm sweeps the logistics. Governor Andrew Cuomo said on Sunday that New York residents have tested the Covid-19 variant first discovered in South Africa.
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