U.S. stock futures point to mixed start as bond yields recede

U.S. stock index futures were on a mixed start on Thursday, with the tech sector hard hit, which saw some relief from the recent fall in bond yields.

What is happening
  • Dow Jones Industrial Average YM00 futures
    fell 118 points, or 0.4%, to 30,353.

  • Futures of the S&P 500 ES00,
    + 0.12%
    it fell 7.5 points, or 0.2%, to 3,755.

  • Futures on the Nasdaq 100 NQ00,
    + 0.47%
    increased 18.75 points, or 0.2%, to 11,585.

On Wednesday, the Dow Jones Industrial Average DJIA,
fell 47 points, or 0.15%, to 30483, the S&P 500 SPX,
decreased 5 points, or 0.13%, to 3760, and the Nasdaq Composite COMP,
fell 16 points, or 0.15%, to 11,053.

What is driving the markets

The focus of investors is on whether the US economy is heading for a recession. Federal Reserve Chairman Jerome Powell said Wednesday that a recession was a possibility, though he maintained in his message that the economy is strong enough to withstand a series of interest rate hikes.

“The ‘unconditional’ notion that the Fed would be prepared to tolerate a recession if it is ultimately required to control inflation has not been repudiated,” said Krishna Guha, vice president of Evercore ISI.

“It simply came to our notice then [on Wednesday] both avoid opening the Fed to political attack from the left, and confirm that Powell does not want to do anything that could prematurely rule out the possibility of a soft landing, even at the expense of leaving the Fed below the Volcker maximum forcefulness. on inflation at the moment “.

Powell will be questioned Thursday by lawmakers on the House Financial Services Committee.

The recent talk on recession has made the 10-year Treasury yield TMUBMUSD10Y,
a drop closer to 3% from 3.48% earlier this month. Falling yields can help long-term assets, such as technology stocks and bitcoin BTCUSD,
+ 3.29%,
which rose in early action on Thursday.

U.S. data will be released on Thursday on S&P Global’s June Unemployment Claims and Preliminary Purchasing Managers’ Indices.

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