Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nasdaq Futures Down 180 Pts; Yields Rise on Stimulus Passage

Stock MarketsMar 08, 2021 06:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse   

Investing.com - U.S. stocks are seen opening lower Monday, with the richly-valued tech sector likely hard hit as investors fret over higher Treasury yields and potential inflation in the wake of the Covid-19 relief bill passing through the Senate.

At 7:05 AM ET (1205 GMT), the Dow Futures contract was down just 2 points, or 0.01%, S&P 500 Futures traded 20 points, or 0.5%, lower, and Nasdaq 100 Futures dropped 180 points, or 1.4%.

After much deliberation, the Senate passed President Joe Biden's $1.9 trillion Covid-19 relief plan on Saturday, one of the largest stimulus packages in U.S. history. The bill will now move to a vote in the House on Tuesday, and then to Biden, who hopes to sign the bill before enhanced jobless benefits expire on March 14.

This followed Friday’s surge in U.S. employment, and adds to fears that this package will overheat the economy, leading to inflation and to the Federal Reserve tightening policies more quickly than had previously been envisaged.

The yield on the benchmark 10-Year has risen sharply in recent weeks. It currently stands at 1.60%, just off Friday’s 1.62% high - levels not seen since the start of the pandemic.

Both Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen have downplayed the rise in long-term Treasury yields, saying they are a sign of expectations for a stronger recovery, not of increased inflation concerns.

It’s the tech sector, full of stocks with very high valuations, which is suffering the most, with the Nasdaq Composite index falling for three straight weeks. Investors appear to be rotating out of the likes of Apple (NASDAQ:AAPL), Zoom (NASDAQ:ZM) and Tesla (NASDAQ:TSLA) into cyclical plays that should benefit as economies reopen.

Elsewhere in the corporate sector, General Electric (NYSE:GE) will be in focus Monday after the Wall Street Journal reported that the industrial conglomerate was nearing a $30 billion-plus deal to combine its jet-leasing unit with AerCap  (NYSE:AER).  

Adding to inflationary concerns has been the rise in crude prices, which continued Monday in the wake of a series of attacks on key Saudi Arabian oil facilities.

Yemeni Houthi forces launched missiles at the Saudi Arabian oil industry on Sunday, including Saudi Aramco’s facility at Ras Tanura, which is capable of exporting roughly 6.5 million barrels a day.

U.S. crude futures traded 0.3% higher at $66.28 a barrel, coming off its highest level since October 18, while the international benchmark Brent contract rose 0.3% to $69.55, after climbing above $70 a barrel for the first time since the pandemic began.  

Elsewhere, gold futures fell 0.9% to $1,682.80/oz, while EUR/USD traded 0.4% lower at 1.1865.

 

Nasdaq Futures Down 180 Pts; Yields Rise on Stimulus Passage
 

Related Articles

Boeing's 737 MAX 10 takes off on first flight
Boeing's 737 MAX 10 takes off on first flight By Reuters - Jun 18, 2021

RENTON, Washington (Reuters) - Boeing (NYSE:BA) Co's 737 MAX 10, the largest member of its best-selling single-aisle airplane family, took off on its maiden flight on Friday from...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (14)
Tobechukwu Olumba
Tobechukwu Olumba Mar 08, 2021 8:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There is a lot of politics in the stimulus package. The yields are hurting those equities. The end is far from here.
Bhagwan Dass
Bhagwan Dass Mar 08, 2021 8:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
don't make biodiesel of edible oil . us soyabean oil last year 27.00 Now 52.50
John Klan
John Klan Mar 08, 2021 8:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bidens puppet masters are leading our economy right down the path of no returns.
Bhagwan Dass
Bhagwan Dass Mar 08, 2021 7:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
look at poor people facing problem at higher prices of commodity
Ish Mi
Ish Mi Mar 08, 2021 7:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
how are yields increasing, when there is fear of inflation from the stimulus package? Can anyone illuminate me pls
jeanfrancois martin
jeanfrancois martin Mar 08, 2021 7:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you really want to keep invest in bonds if your inflation is around 5-10% for exemple. You want to sold them and invest your money in something better for your wallet
Patrecia Sapulette
Patrecia Sapulette Mar 08, 2021 7:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
one possibility: stimulus means more money in the market which would triggers inflation. If inflation rises too fast and higher than the fixed income investors such as bonds yield, their adjusted bond returns might be not as attractive. This causing the bond selloffs. They will invest in something else...like commodity, value stocks, etc.
Viking Fire
Viking Fire Mar 08, 2021 7:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Will be nice when we can get out of this abyss trump left us in and move forward once again.
James Bo
James Bo Mar 08, 2021 7:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
MWOA! Same thing, different names
Sreekumar Pookkudi
Sreekumar Pookkudi Mar 08, 2021 7:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tesla justify its valuation if they have at least 30%of world automobile sales. but they don't have even 3%. so people will loose big from Tesla I believe. similar case for many over values tech company
Notvery Goodathis
Peteymcletey Mar 08, 2021 7:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fake deliberation. They forced through their wish list items. and Americans just saw 1400 and forgave them
Viking Fire
Viking Fire Mar 08, 2021 7:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sure is tough to dig us out of this disaster trump left us in but things will be up today.
Clyde McClellan
Clyde McClellan Mar 08, 2021 7:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
cant blame him when see disaster coming ahead so watch n see
Clyde McClellan
Clyde McClellan Mar 08, 2021 7:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'm not a Trump fan by the way
Jon Bonjon
Jon Bonjon Mar 08, 2021 7:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So the market was suppossed to keep going up to infinity and beyond?I think not.
FATME sahraie
FATME sahraie Mar 08, 2021 7:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hi,dear I'm iranian don't have any money very poor how to get money from your
Phong Nguyen
Phong Nguyen Mar 08, 2021 7:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So what going on with USD mans ?
Gregory Me
Gregory Me Mar 08, 2021 7:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trump was right. Biden is crushing 401k plans, while handing over real Americanns' tax dollars to illegals who break into the country.
Rashard Clarke
Rashard Clarke Mar 08, 2021 7:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
two words that dont go together Trump and being right history proven this over and over
James Stewart
James Stewart Mar 08, 2021 7:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Let's not let a little thing like facts enter into a conversation about Drumpf.
Church of Bear Market
Church of Bear Market Mar 08, 2021 7:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The end (stimulus-induced yield rise which cramps the equities) is near! repent and sell short!
Jenn foster
Jenn foster Mar 08, 2021 7:24AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ill stick with my long term choice. tech tech tech tech
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email