On Tuesday, in morning European trading hours, US stock futures are gradually spiralling upwards after a day of big declines as S&P 50 and Nasdaq closed out sharply lower on Monday with growing valuation concerns amid prospects of a rapid rise in inflation, while a windy upswing trends in US Treasury Yields had pressed all three key indices of Wall Street further.
Nonetheless, during preparation of the report, on GMT. 10.05, major stock indices in the Wall Street seemed bullish ahead of Fed Chiar Powell’s speech before Senate Banking Committee which would more likely to address a fragile and near-stagnant US labour market, adding fresh impetus on President Biden’s push towards a $1.9 trillion in additional pandemic stimulus bill despite prospects of a rise in inflation alongside an upsurge in budget deficit.
Besides, ahead of Powell’s remarks, US Dollar jolted to a nearly 1-1/2-month low which in effect had also aided US stock futures’ causes with Dow advancing 0.10 per cent to 31,558.0 and benchmark S&P futures hovering near their previous day closure.
Wall Street stomachs big decline as rising US Treasury Yields press key indices
However, despite a sharp downturn in benchmark S&P 500 and tech-heavy Nasdaq, on Monday’s market wrap down, trade-sensitive Dow eked out marginal gains, mostly boosted up by a 4 per cent surge in the shares’ prices of Walt Disney.
Nonetheless, since US benchmark 10-yr Treasury yields have been up at 1.363 per cent, well en-route to score their largest monthly gains in more than three years, S&P and Nasdaq were met with a steep headwind, while valuation concerns over a slew of US stocks had added to further strains.
Citing statisitcs, on Monday’s Wall Street wrap-up, Dow ends up 0.09 per cent higher to 31,521.69 and S&P 500 shrugged off 0.77 per cent to 3,876.50, while tech-heavy Nasdaq was nudged 2.46 per cent lower to 13,533.05.
Meanwhile, addressing to valuation associated concerns, a chief market strategist at Reynolds Strategy, Brain Reynolds wrote in a client note late in the day, “This is a small pullback primarily because stocks got a little overheated and there are a few worries out there that people are making mountains out of molehills. ”