Nasdaq, S&P, Dow futures drop as yields push to new decade highs
Stock index futures pointed to a lower open on Wednesday as they delivered new decade highs.
Nasdaq 100 futures (NDX: IND) -0.6%S&P Futures (SPX) -0.6% and Dow futures contract (INDU) -0.5% Mixture.
Rates have increased. 10-year Treasury yield (US10Y) rose 11 basis points to 4.11% and the 2-year yield (US2Y) increased by 9 basis points to 4.52%. Furthermore, there are times when a 2-year high has not been seen since 2007 and a 10-year high has not been observed since 2008.
The S&P closed above 3,700 on Tuesday, which Citi says increases the odds of a price squeeze with half of the nominal short positions on the index. in red.
“It’s interesting that we’re back in the ‘no news is good news’ momentum for risk sentiment, given how long the bears are in control, although I still don’t believe the upside “I would have to see the S&P move north of the October highs around 3,800 to believe this move has legs.”
Netflix is up more than 10% after reversing two-quarters of its subscriber losses and top estimate.
Rising oil prices help related stocks, following a sell-off in the previous session, despite President Joe Biden confirming the release 15 million barrels from SPR.
UK gilt production is on the rise again after consumer inflation rebounded to 10.1% annually, in line with a 40-year high.
According to the US economic calendar, September housing starts and permits mixed data. Hits started at -8.1% million to 1.439 million vs 1.475 million expected. Building permits, on the other hand, were at +1.4% Millions to 1,564 Millions versus a forecast of 1,550 Millions.
“The U.S. housing market reversal has led to a psychological breakdown, but residential construction jobs haven’t fallen,” said Paul Donovan of UBS. “This could be underreporting (labour market data serves itself worse.) It could also reflect underemployment – working fewer hours is still considered employment, but those affected workers may need to look for a second or third job.”
This afternoon, the Fed’s Beige Book of Regional Economic Activity will be released. Investors will also be watching what once loyal and now hawkish Minneapolis Fed President Neel Kashkari has to say.
“The beige book prepared for the November FOMC meeting is likely to remain more important than usual as FOMC participants increase their attention to anecdotal evidence in the coming months,” said Nomu4a chief economist Richard Koo. today’s volatile data environment”. “The previous Beige Book, prepared for the September FOMC meeting, presented surprisingly weak sentiment on both current conditions and expectations of future performance, thus support for our U.S. recession. all potentially remarkable.”
Among other active stocks, United Airlines is doing well after earnings optimistic in Q4.