Markets Today: Stock Index Futures Drop As Global Bond Yields Climb – Barchart.com
Markets around the world are feeling the pinch as global bond yields continue to rise. Stock index futures are down today as investors worry about the potential for higher interest rates, which could put pressure on corporate earnings.
The Dow Jones Industrial Average is down over 120 points in premarket trading, while the S&P 500 and Nasdaq Composite Indexes are both down around 0.5%. The yield on the 10-year Treasury note is up to 1.75%, its highest level since April.
The rise in bond yields is being driven by a number of factors, including rising inflation expectations, a stronger economy, and a recent uptick in Treasury yields. Investors are concerned that higher interest rates could make it more expensive for companies to borrow money, which could weigh on corporate earnings.
At the same time, higher yields could also make it more attractive for investors to put their money into bonds, rather than stocks. This could lead to a shift in the market, with investors selling off stocks and buying bonds.
The rise in bond yields is also being driven by the Federal Reserve’s recent decision to keep interest rates near zero through 2023. This has caused investors to question the Fed’s commitment to keeping rates low, and has led to speculation that rates could rise sooner than expected.
It remains to be seen how markets will react to the rise in bond yields, but for now it appears that stock index futures are headed lower. Investors should keep an eye on the bond market for clues as to where markets are headed.
