S&P 500 and Nasdaq 100: Rising Treasury Yields Weigh on Stock Futures Today
The benchmark 10-year Treasury yield climbed nearly 3 basis points to 4.008%, marking its highest level since August. Additionally, U.S. crude oil prices surged over 2%, reaching more than $76 per barrel amid heightened tensions in the Middle East.
Despite these pressures, the major indexes managed modest gains in the prior week. The S&P 500 edged up 0.2%, the Nasdaq Composite rose 0.1%, and the Dow Jones Industrial Average also added 0.1%. This marked the fourth consecutive winning week for all three indexes, bolstered by Friday’s stronger-than-expected jobs report. The report fueled optimism that the Federal Reserve might achieve a “soft landing” for the economy. The Dow even closed at a record high following the data.
Economic Data and Earnings in Focus
Looking ahead, traders will closely watch key economic indicators this week, including the Federal Reserve’s meeting minutes on Wednesday and the U.S. consumer price index (CPI) report on Thursday. These releases will provide further insight into inflation and the Fed’s potential actions. The earnings season also kicks off, with Delta Air Lines and JPMorgan Chase among the first major companies to report results on Thursday and Friday, respectively.
Market volatility may remain elevated, according to Truist Wealth co-chief investment officer Keith Lerner. He pointed to upcoming political uncertainty, including the looming U.S. presidential election and potential surprises in October, as reasons for traders to stay cautious in the near term.