Tuesday, May 21, 2024
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Tuesday’s Stock Futures Decline as Anxiety Over Rising Rates Returns

Tuesday saw a decline in U.S. stock futures as investors were once again put off by rising bond yields and the third-quarter earnings season picked off.

86 points, or 0.3%, were lost by futures linked to the Dow Jones Industrial Average. Nasdaq 100 futures and S&P 500 futures both decreased by 0.4% and 0.6%, respectively.

The 10-year Treasury yield surpassed 4.80%, rising to its highest level since October 6 when it traded at 4.887%. The action was in response to retail sales figures that exceeded economists polled by Dow Jones’ expectations.

The broader market has recently been under pressure from rising yields as traders assess the possibility of tighter Federal Reserve policies for a longer period of time than anticipated. Investors have also thought about how the Israel-Hamas conflict would affect the world economy.

Uncertainties are, undoubtedly, being somewhat reduced by the third quarter’s strong earnings season start.

Johnson & Johnson increased after reporting better-than-anticipated adjusted third-quarter earnings and revenue, driven by robust sales of pharmaceuticals and medical technology. The stock increased more than 1% in premarket trading as a result of Bank of America’s results, which also beat analyst estimates.

Source (CNBC)

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