Early Thursday saw stock index futures in the US fall across the board, with fluctuations experienced as bond yields eased. The benchmark 10-year Treasury yield was previously at 1.4636 percent but rose to 1.49 percent on Wednesday before falling slightly. Investors were wary due to bond yield rises, and this resulted in significant losses during the regular trading session on Wednesday.
Futures that were linked to the Dow Jones Industrial Average saw losses of over 130 points at the open. In addition, losses were seen with Nasdaq 100 futures and S&P 500 futures. Initially, Dow futures fell by over 200 points, although they did experience an upward trend briefly.
What the Data Showed
The data showed that there was a 1.3 percent drop in S&P 500 futures, and a 0.38 percent drop in the Dow Jones Industrial Average, which fell by 119 points. With a decline in tech names, the Nasdaq Composite fell by 2.7 percent.
This means that the index could experience its longest negative period since last September, as it is set to post its third negative week in a row. While the 10-year treasury yield experienced gains, it had already experienced what was described as a flash spike last week, when it rose to 1.6 percent.
Economic Growth Could be Positive for Stocks and Assets
When it comes to successful trading, many people look for the best forex brokers as shown in the article on btcmanager.com. However, the economy also has an impact, and one expert said that economic growth this year could be robust with a small increase in inflation.
He said that both inflation and growth were likely to start going back to normal levels as the global pandemic started to ease, and this would prove to be a positive step for stocks and risk assets.
Good News Stemming from Opening of the Economy
As the vaccination program continues to roll out and the impact of the pandemic eases, more sections of the economy will open up. This proved to be a huge positive for trading during the session on Wednesday.
As a result of the reopening of some parts of the economy, shares in companies such as cruise liners and airlines went up. This came after it was confirmed by President Biden that there will be adequate vaccines available for all adults in the United States by the end of May.
It is thought that a number of other stimulus plans could help to boost the market in the near future. This includes plans being considered by the Senate to provide $1.9 trillion in relief funding, a package that was passed by the House recently.
In the meantime, many investors were eagerly awaiting information about the number of new jobless claims, which is another indicator of economic recovery. A survey carried out by Dow Jones showed that economists were predicting around three-quarters of a million new claims for unemployment in the figures for the final week in February.