On Monday, a rise in Treasury yields left the major averages mixed.
U.S. stock futures were steady in overnight trading Monday following a rise in bond yields that pressured growth pockets in the market. Dow Jones Industrial Average futures fell just 4 points. S&P 500 futures were flat, and Nasdaq 100 futures fell 0.1%. The 10-year Treasury yield rose on economic optimism and inflation fears, briefly topping 1.5% on Monday, its highest level since June. Equities saw an uneven session amid the spike in rates. The Dow Jones Industrial Average on Monday gained 71 points, and the small-cap Russell 2000 rallied 1.5%. However, the S&P 500 fell 0.3%. The Nasdaq Composite was the relative underperformer, dipping 0.5%, as the drop in bond prices pressured growth names like Microsoft and Amazon. “The stock market increasingly indicates that the U.S. economy has entered another reopening cycle,” Leuthold Group chief investment strategist Jim Paulsen. “A Covid-led resurgence in economic activity may well worsen supply chain woes and eventually reignite inflation concerns. But, for now, it has forced investors to reevaluate whether they have too much in growth and tech and not enough in economically sensitive investments,” Paulsen added.
