Wall Street stocks were relatively unchanged before the opening bell on Tuesday, as investors considered the impact of increasing Treasury yields and the likelihood of a Federal Reserve interest-rate cut in the near future.
Futures on the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) hovered around the same level. Nasdaq 100 futures (^NDX) were down 0.1%, attempting to find momentum after closing with a gain on Monday.
Two Fed policymakers’ hawkish comments served as a reminder to investors that the US economy’s resilience will likely result in higher borrowing costs for a longer period. According to the CME’s FedWatch tool, traders are now estimating a 26% chance of policymakers raising rates at their November meeting, compared to 16% a week ago.
This possibility contributed to 10-year Treasury yields’ (^TNX) rise to nearly 16-year highs of around 4.7% on Tuesday. This bond sell-off, combined with increases in oil prices and the value of the dollar, has diminished investors’ appetite for stocks. The Russell 2000 index of small-cap stocks has turned negative for the year.
2023-10-03 06:10:46
Article from finance.yahoo.com
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