US Futures Down as Dow, S&P, and Nasdaq Futures React to High Yields
US Futures: Dow, S&P 500 and Nasdaq
The US Futures indexes are trading in the red on Friday early morning, as the Treasury yields remain elevated at a record high level. The 10-year Treasury yield is now 4.94% at 3.35 a.m. EDT, it was closed at 4.990% on Thursday.
The Dow Jones future is trading lower by 106 points or 0.32 percent and at 33441 levels, while the S&P 500 future index is down by 17 points or 0.41 percent and at 4286. The Nasdaq 100 futures index is also trading lower by 81 points or 0.55 percent at the 15808 level at 1.10 p.m. IST. or 3.40 am EDT.
US Markets Updates
On Thursday, the US stock market indexes were trading near the flat line in the morning session. The indexes fell sharply in the second half, as 10-year Treasury yields spiked to a record level after the Federal Reserves Chair Jerome Powell’s speech
Powell in his speech said that inflation is still too high above the Fed’s 2% target, it would likely require lower economic growth. He further said the Fed is “proceeding carefully” on future rate hikes due to a spike in Treasury yields that have helped tighten financial conditions “significantly”.
Traders are now widely expecting the Fed to keep interest rates unchanged at its November meeting, according to the CME FedWatch tool. However, there is a still chance of 60% that the Fed may hike interest rates in the December meeting as Powell leaves the door open for rate hikes.
US Markets for Friday
On the economic front, there is no major data to be released on Friday. Meanwhile, investors will be looking into the quarterly results from Comerica, Regions Financial Corps, Huntington Bancshares Inc., and Schlumberger NV. The oilfield services company SLB will also announce the quarterly report on Friday.
Also, read US Markets: Dow and Nasdaq Slip on Record Yields & Powell’s Speech Concerns
Trade Setup for Friday, 20 October 2023: Stock Market Today
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