US stock futures declined on Wednesday as bond yields increased, with optimism for rapid interest-rate cuts diminishing ahead of new jobs data and the release of Federal Reserve meeting minutes.
Futures on the Dow Jones Industrial Average (^DJI) and the benchmark S&P 500 (^GSPC) both dropped approximately 0.3%. Futures on the Nasdaq 100 (^NDX) fell by around 0.5% after a challenging session that witnessed tech stocks losing nearly 1.6%.
The hopes for the year-end market rally to continue into 2024 suffered a blow on Tuesday as stock indexes and bond prices simultaneously declined, resulting in the worst start to a year in decades. Bonds are on a downward trend for the fourth consecutive day, causing the 10-year Treasury yield (^TNX) to approach 4%.
Traders have begun to reduce their bets on Fed interest-rate cuts, with 74% now anticipating a shift in March, compared to 89% a week ago, according to the CME FedWatch Tool.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
The minutes of the Fed’s December meeting, which are scheduled to be released later, could provide…
2024-01-03 07:20:11
Original from finance.yahoo.com
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