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Nasdaq Futures Down 220 Pts; Treasury Yields Climb Ahead of Powell Testimony

Stock MarketsSep 28, 2021 07:03AM ET
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© Reuters

By Peter Nurse   

Investing.com - U.S. stocks are seen opening lower Tuesday, with the tech-heavy Nasdaq Composite particularly hard hit by climbing Treasury yields.

At 7:05 AM ET (1105 GMT), the Dow Futures contract was down 140 points, or 0.4%, S&P 500 Futures traded 35 points, or 0.8%, lower, while Nasdaq 100 Futures dropped 220 points, or 1.5%.

The benchmark 10-year Treasury yield has soared above 1.54%, climbing to its highest level since June, in the wake of last week’s Federal Reserve policy-setting meeting. This rise has increased the pressure on stock valuations, especially for those with poor short-term cash flow.

Fed chair Jerome Powell is set to warn later Tuesday, in a speech to the Senate Banking Committee, that the recent rise in inflation may last longer than anticipated.

“Inflation is elevated and will likely remain so in coming months before moderating,” Powell said, in his pre-released speech. “As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors.”

Also weighing on the market is the potential for a government shutdown as early as Friday if a funding plan isn’t agreed upon.

Economic data comes in the form of CB Consumer Confidence, which is expected to have risen to 114.5 in September from August’s 113.8, and the S&P/Case-Shiller House Price Index, which is seen having moved up in July to 20% from 19.1% in the month prior.

In corporate news, Micron Technology (NASDAQ:MU), a maker of chips and data storage technology, is expected to report fourth-quarter results Tuesday, but investors may pay more attention to its guidance given the global chip shortage.

Crude prices traded higher Tuesday, rising for the sixth consecutive session on concerns of a global supply crunch just as demand picks up with the easing of Covid-19 pandemic restrictions.

Global supplies remain tight after Hurricane Ida disrupted production in the U.S. Gulf of Mexico region in late August while members of the Organisation of Petroleum Exporting Countries and their allies only gradually increase output.

Investors now await U.S. crude oil supply data from the American Petroleum Institute, due later in the day, as well as OPEC’s latest World Oil Outlook.

By 7:05 AM ET, U.S. crude futures traded 0.9% higher at $76.12 a barrel, hitting its highest since July, after jumping 2% the previous day. The Brent contract rose 0.7% to $79.30, reaching its highest since October 2018, after climbing 1.8% on Monday.

Additionally, gold futures fell 1.1% to $1,732.20/oz, while EUR/USD edged 0.1% lower to 1.1681.

 

Nasdaq Futures Down 220 Pts; Treasury Yields Climb Ahead of Powell Testimony
 

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Comments (14)
Heine Pedersen
Heine Pedersen Sep 28, 2021 8:41AM ET
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Don't quite get the logic behind how a sell of in bonds is good for the dollar?
Jon Bal
Jon Bal Sep 28, 2021 8:41AM ET
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when you sell your bonds you get dollars in exchange
Heine Pedersen
Heine Pedersen Sep 28, 2021 8:41AM ET
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Jon Bal  And that's bad for precious metals?? Makes no sense at all..
Jon Bal
Jon Bal Sep 28, 2021 8:41AM ET
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Heine Pedersen  a strong dollar is bad for precious metals.  now if everyone sold their bonds for dollars and decided they wanna dump their dollars for metals that would be good.
Tyrone Jackson
Tyrone Jackson Sep 28, 2021 8:33AM ET
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Fed members are front running everything. Always did- always will.
Abubakar sadiq aminu
Abubakar sadiq aminu Sep 28, 2021 8:33AM ET
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Hello
Riazullah Malakhel
Riazullah Malakhel Sep 28, 2021 8:32AM ET
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Montgomery Lindeen
Montgomery Lindeen Sep 28, 2021 8:19AM ET
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They can’t make their mind up.. ugh
Brandon Flores
Brandon Flores Sep 28, 2021 8:15AM ET
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everything is transitory
Jimmy Lo
Jimmy Lo Sep 28, 2021 8:02AM ET
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what inflation?
Wankel YU
Wankel YU Sep 28, 2021 7:56AM ET
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Powell earned 10b+ from fed 🍺🍺🍺
Jahidul Islam
Jahidul Islam Sep 28, 2021 7:42AM ET
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assalamualikum
John Klan
John Klan Sep 28, 2021 7:38AM ET
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Bloodbath alert ⚠️
Meezan Rahman
Meezan Rahman Sep 28, 2021 7:33AM ET
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hello everyone.i am new in this site.
Meezan Rahman
Meezan Rahman Sep 28, 2021 7:32AM ET
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hello everyone.i am new in this site.
Abubakar sadiq aminu
Abubakar sadiq aminu Sep 28, 2021 7:32AM ET
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Hello my friend
Ron Love
Ron Love Sep 28, 2021 7:25AM ET
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2021 is never-ending FUD. Every week its something new
Tyrese Lee
Tyrese Lee Sep 28, 2021 7:25AM ET
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Say that again
Tuwsanaa Idesh
Tuwsanaa Idesh Sep 28, 2021 7:24AM ET
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Waqar Ahmad
Waqar Ahmad Sep 28, 2021 7:17AM ET
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Jiii hai
 
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