On Wednesday, stock futures increased as investors analysed recent inflation data and applauded a significant merger in the oil sector. The 16-year highs set last week by Treasury rates have since started to decline.
Futures linked to the Dow Jones Industrial Average traded 84 points, or about 0.3%, higher. S&P 500 futures increased by around 0.3%, while Nasdaq 100 futures increased by about 0.4%.
The producer price index increased by 0.5% in September, above the Dow Jones forecast of a 0.3% increase. Even though it was slightly higher than economists had anticipated, the September data still showed a slowdown from the 0.7% rise in producer prices in the preceding month.
The 10-year Treasury yield dropped by more than 6 basis points to 4.58% even after the inflation report showed higher-than-expected levels. While this was happening, the 2-year yield increased just 0.1 basis points to 4.993.
Stocks gained the previous day as a result of a decrease in the benchmark US yield. Tuesday’s gains for the 30-stock Dow were 0.4%, the S&P 500 was up 0.52%, and the tech-heavy Nasdaq Composite was up 0.58%.
On Tuesday’s “Closing Bell” on CNBC, Lauren Goodwin, director of portfolio management at New York Life Investments, said: “If rates continue to move lower, I think that will be the key driver of a reasonable return in the equities market.”
Source (CNBC)
