This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: Stock Futures Fall as Bond Yields Hit Three-Month High
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > Stock Futures Fall as Bond Yields Hit Three-Month High
Markets

Stock Futures Fall as Bond Yields Hit Three-Month High

Editorial Board Published September 28, 2021
Share
Stock Futures Fall as Bond Yields Hit Three-Month High
SHARE

U.S. government bond yields hit their highest level in three months and stock futures sagged as investors rotated out of interest-rate sensitive technology stocks.

Futures tied to the S&P 500 fell 0.9%, a day after weakness among technology stocks pulled the broad index lower and snapped a three day winning streak. Tech-heavy Nasdaq-100 futures fell 1.6% Tuesday, while Dow Jones Industrial Average Futures edged down 0.5%. 

Some investors are recalibrating portfolios to prepare for the gradual end of the ultra-supportive monetary policies employed to see the economy through the worst of the coronavirus-driven downturn. Rising yields make bonds more attractive than equities, especially highly-valued tech stocks for which investors count on profit growth far into the future.

“People are realizing, or at least remembering, that central banks are going to have to start raising rates,” said Altaf Kassam, head of investment strategy for State Street Global Advisors in Europe. “The patient has become used to being given all these drugs, but soon those drugs are going to have to be reduced.”

Expectations of tighter monetary policy and concerns about inflation pressures pushed bond yields higher. The yield on the benchmark 10-year Treasury note rose for a sixth consecutive day Tuesday, to 1.524%, from 1.482% Monday. Bond yields and prices move in opposite directions.

Higher yields drew investors into the U.S. dollar. The ICE Dollar Index, which tracks the currency against a basket of others, edged up 0.3% to 93.64, its highest level since November.

Rallying energy prices are putting extra strain on economies and compounding concerns about inflationary pressures. Brent crude, the international oil benchmark, rose 0.9% to $79.44 a barrel, its highest level since October 2018.

Natural-gas prices set fresh highs Tuesday. U.S. Henry Hub natural gas prices jumped 6.3% to $6.09 per million British thermal units, their highest since 2014.

Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen are set to appear before a Senate panel at 10 a.m. ET to discuss the state of the economic recovery. 

In premarket stock moves, Ford Motor Company rose 2.5% after the auto maker said it planned to strengthen its push toward electric vehicles by spending $7 billion on new factories.

Major tech names were lower ahead of the opening bell. Twitter, Qualcomm, Nvidia, Snap and Square all fell at least 2%. Shares of energy companies rose as oil prices climbed. Occidental Petroleum Corporation and Devon Energy each added more than 2%.

Overseas, European markets slumped, while Asian indexes were mixed. The pan-continental Stoxx Europe 600 fell 1.1%, led by losses among tech stocks. Chip giant ASML fell nearly 6%. Fintech payments company Adyen slipped over 5%. 

In Hong Kong, signs of support from China’s central bank helped boost beaten-down shares of Chinese real-estate developers. The People’s Bank of China said late Monday it would “maintain the healthy development of the property market and safeguard the legitimate rights and interests of house buyers.”

Shares of Country Garden Holdings, China Vanke and China Overseas Land and Investment all jumped between 5% and 6%. China Evergrande Group, the ailing real estate giant that has fallen behind on a payment to international bondholders, rose more than 4%. The city’s flagship Hang Seng Index rose 1.2%.

Sunac China Holdings surged almost 15%, snapping two days of steep declines, after the property company played down a leaked plea for help from a local government, and said sales were good.

In Japan, the Nikkei 225 edged down 0.2% while in mainland China, the Shanghai Composite Index rose 0.5%. 

Some investors are recalibrating portfolios to prepare for the gradual end of ultra-easy monetary policies.

Photo: brendan mcdermid/Reuters

—Xie Yu and Frances Yoon contributed to this article.

Write to Will Horner at [email protected]

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article Oil Hits Three-Year High as Gas Crunch Spills Into Crude Market Oil Hits Three-Year High as Gas Crunch Spills Into Crude Market
Next Article Facebook, Acceleron Pharma, Spotify: What to Watch When the Stock Market Opens Today Facebook, Acceleron Pharma, Spotify: What to Watch When the Stock Market Opens Today

Editor's Pick

New Council of Financial Advisors report finds tariffs not inflicting inflation

New Council of Financial Advisors report finds tariffs not inflicting inflation

Former Trump administration head of financial coverage Tomas Philipson discusses President Trump’s commerce talks with South Korea and Japan, present…

By Editorial Board 4 Min Read
Moriah Plath Reveals Complete Hair Loss Attributable to Alopecia
Moriah Plath Reveals Complete Hair Loss Attributable to Alopecia

Studying Time: 3 minutes Moriah Plath is clearing the air, as a…

5 Min Read
Denise Richards’ Husband, Aaron Phypers, Recordsdata For Divorce
Denise Richards’ Husband, Aaron Phypers, Recordsdata For Divorce

Studying Time: 3 minutes Denise Richards could quickly be headed for divorce…

4 Min Read

Oponion

How YouTube Makes Sure Its Hitmakers Don’t Stumble

How YouTube Makes Sure Its Hitmakers Don’t Stumble

When online comedian Adande Thorne met with his YouTube adviser…

October 15, 2021

Amazon Intends to Appeal Union Victory in New York

Amazon.com Inc. plans to appeal its…

April 8, 2022

GCT Semiconductor and Giesecke+Devrient Companion to Launch Modern eSIM Answer for IoT Gadgets

GCT Semiconductor Holding Inc., a number…

May 23, 2025

Mortgage charges rise, hitting demand

Kudlow panelists Steve Forbes, David Bahnsen…

December 19, 2024

The 2025 Hyundai Tucson Restricted AWD Hybrid SUV

What's a Tucson? The Tucson is…

January 26, 2025

You Might Also Like

Bitcoin breaks 3,000 worth document as lawmakers start ‘Crypto Week’ in Washington
Markets

Bitcoin breaks $123,000 worth document as lawmakers start ‘Crypto Week’ in Washington

Sen. Cynthia Lummis, R-Wyo., discusses crypto regulation and tax reform on Making Cash. Bitcoin hit a document excessive on Monday…

4 Min Read
Copper costs hit document excessive after Trump declares 50% import tariff
Markets

Copper costs hit document excessive after Trump declares 50% import tariff

President Donald Trump introduced his administration will impose a 50% tariff on imported copper, marking a brand new ecalation in…

4 Min Read
Tesla shares slide after Musk declares new political transfer
Markets

Tesla shares slide after Musk declares new political transfer

FOX Enterprise’ Stuart Varney analyzes President Donald Trump and former DOGE head Elon Musk’s relationship after Musk’s public criticism of…

6 Min Read
Nvidia CEO sells M value of inventory as a part of deliberate sale
Markets

Nvidia CEO sells $15M value of inventory as a part of deliberate sale

Zor Capital Funding Advisory consultant Joe Fahmy discusses the technical indicators that predict inventory market momentum on Making Cash. Nvidia CEO Jensen…

3 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?