Please try another search
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.
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.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other 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, don’t trash it.
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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.