(Reuters) – U.S. stock index futures declined on Monday due to the increase in Treasury yields, causing investors to be cautious about the timing of interest rate cuts while waiting for more quarterly reports from corporate America.
Starting the week on a somber note, two-year Treasury yields rose to a one-month high at 4.4% after Federal Reserve chair Jerome Powell stated in an interview on Sunday that he preferred to wait until he was more confident that inflation was consistently decreasing before lowering interest rates.
Although investors were relieved by the latest data showing the labor market’s resilience against the tightest credit conditions in years, uncertainty about when borrowing costs might be reduced has sporadically impacted risky assets.
Traders are now anticipating a 64% likelihood of a minimum 25 basis point (bps) rate cut in May and nearly a 100% chance in June, according to the CME FedWatch Tool.
Investors also took a break from the recent bull-market run on Wall Street that…
2024-02-05 06:13:54
Article from finance.yahoo.com