S&P 500 Futures Rally in Rebound from Unusual Bonds Break

On Wednesday, stock futures in the U.S. experienced an increase, after a difficult day for equities despite the additional support provided by bond yields.

What’s happening

  • The futures for the Dow Jones Industrial Average, represented as YM00, increased by 19 points or 0.1% to reach a value of 36208.
  • The S&P 500 futures, referred to as ES00, increased by 10 points or 0.2%, reaching a value of 4585.
  • The Nasdaq 100 futures, specifically NQ00, saw a rise of 55 points or 0.3%, reaching a total of 15964.

The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite experienced changes on Tuesday. The DJIA dropped 80 points (0.22%) to 36125, the SPX decreased by 3 points (0.06%) to 4567, and the COMP increased by 44 points (0.31%) to 14230.

The decline in S&P index hides a more positive performance from the prominent group of large-scale technology stocks, known as the Magnificent Seven, which includes Apple. The shares of Apple saw a 2% increase.

What’s driving markets

On Wednesday, there will be additional jobs data available through the ADP private-sector employment report. However, it should be noted that this report is not a trustworthy indicator of the government’s jobs data, which will be released on Friday.

The yield on the 10-year Treasury note, which is represented by the symbol BX:TMUBMUSD10Y, dropped by 11.5 basis points to 4.18% on Tuesday. This decline occurred after the release of data that revealed a decrease in job openings, reaching a low not seen in 28 months. The 10-year yield, which is considered a benchmark, has now experienced declines on 10 out of the past 13 trading days. It is important to note that yields and prices move in opposite directions.

The markets will also be paying attention to the statements made by JPMorgan Chase’s CEO Jamie Dimon, as he testifies in front of the Senate Banking Committee. Dimon mentioned in his prepared remarks that if the proposed rules regarding capital increase are put into effect, mortgages will become more costly, saving for retirement will become more challenging, and consumer prices will go up.

Bank of America’s CEO, Brian Moynihan, expressed concern at a Goldman Sachs conference that the Federal Reserve should be cautious about over-tightening the economy. He stated that interest rates will remain elevated, but emphasized the need to strike a balance and avoid excessively suppressing inflation.

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