US stock index futures fell slightly in early trading on Tuesday, after rising bond yields caused the Nasdaq Composite Index to fall by more than 1%, triggering a technology-focused sell-off.
Dow futures fell 33 points. S&P 500 index futures and Nasdaq 100 index futures are trading below the flat line.
The Standard & Poor’s 500 Index and the Nasdaq Composite Index fell on Monday as part of the market’s growth responded to the rise in bond yields. The US 10-year Treasury bond yield climbed 9 basis points to over 1.62% on Monday.
The stock initially reacted positively to the announcement Federal Reserve Chairman Jerome Powell was nominated President Biden’s second four-year term has pushed people to expect that as the economy recovers from the pandemic and tries to fight inflation, the central bank will keep monetary policy unchanged. However, the market reversed towards the end and yields continued to rise.
on MondayThe Dow Jones Industrial Average rose by more than 300 points during the intraday session and then rose by 17 points. The S&P 500 Index fell 0.32% after hitting an intraday high in regular trading. Despite setting an intraday record earlier in the session, the Nasdaq Composite Index still fell 1.26%.
Leuthold Group Chief Investment Strategist Jim Paulsen said: “The announcement that the current chairman Powell will be reappointed by President Biden has strengthened the bullish sentiment.” “In recent weeks, there has been growing concern that Lyle Brainard may be elected. Instead of Powell, she is considered a larger monetary dove, which exacerbates concerns about inflation.”
Although trading may slow down due to the Thanksgiving week, and the Fed’s main decision lags behind the market, investors will pay attention to some economic data released on Tuesday, including the Philadelphia Federal Reserve. Other data to be released later this week include weekly unemployment claims, GDP updates, personal income and consumer confidence.
Ryan Detrick, chief financial strategist at LPL Financial, said: “This is Thanksgiving, so the trading volume in the next few days may be very low, and there will not be too many fireworks.” “However, Wednesday. The latest minutes of the Fed’s meeting and the Fed’s favorite PCE inflation indicator will be released, so we can consider a few things before we start eating turkey.”
The earnings season continues on Tuesday, with reports from American Eagle, Best Buy with Abercrombie and Fitch Before the bell. Dell Technologies, gap, life value with Nordstrom Quarterly earnings will be announced after the close on Tuesday.
Investors are also responding to overseas coronavirus concerns. German Chancellor Angela Merkel (Angela Merkel) warned that the country’s virus is proliferating.
Paulson added: “Although the number of Covid cases worldwide is rising, there is not much evidence that it will shut down the U.S. economy again as it did in the past.” “For example, the travel forecast for the Thanksgiving holiday is the most pre-pandemic Strong.”
The US market will be closed on Thursday for the Thanksgiving holiday. The stock market closed early on Friday at 1pm Eastern Time.