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Higher Bond Yields Prompted a Sell-Off, but S&P 500 Futures are Barely Changed on Friday

The broad-market index had been rising for eight days, but Friday saw minimal movement in S&P 500 futures as traders watched Treasury yields.

Futures on the Nasdaq 100 dropped by almost 0.2%, while futures on the S&P 500 decreased slightly. The Dow Jones Industrial Average-linked futures saw a 0.1% increase of 49 points.

The digital ad company’s poor revenue projections for the fourth quarter caused Trade Desk to plummet nearly 30%. Plug Power, a company that makes hydrogen fuel cells, collapsed by 25% due to a larger-than-anticipated third-quarter loss and a revenue shortfall.

Its greatest winning streak since 2021 ended on Thursday as the S&P 500 fell 0.8%. Following a nine-day winning streak, which was also the longest winning run the Nasdaq Composite had seen in two years, the index fell by 0.9%. A 0.7% decline was seen in the Dow of 30 stocks.

Following Jerome Powell, the chair of the Federal Reserve, stating that the institution is “not certain” it has done enough to combat inflation, stocks fell.

He read prepared remarks at an International Monetary Fund event. “The Federal Open Market Committee is committed to achieving a posture of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time; we are not confident that we have reached such a stance,” he added.

Thursday’s steep increase in bond yields put pressure on stocks. The benchmark rate on 10-year Treasury notes increased little on Friday.

Kevin Simpson, the CEO and chief investment officer of Capital Wealth Planning, stated on CNBC’s “Closing Bell” on Thursday that “the bond market itself is often a lot wiser than the stock market when it comes to projecting rates.”

Source (CNBC)

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