S&P 500 futures rose Tuesday evening after the index slid during the regular session as long-term Treasury yields climbed to their highest levels in decades. The 30-year yield topped 5.6% and the 10-year neared 5.3%, even as a Federal Reserve official's comments eased some rate-hike fears ahead of Wednesday's inflation report.
S&P 500 futures gained 0.16% Tuesday evening, alongside Dow futures, while Nasdaq-100 futures added 0.26%. The move followed a session in which stocks had retreated under pressure from rising bond yields.
Yields climb to multi-decade highs
The 30-year Treasury yield hit a high above 5.6% on Tuesday, a level not seen since June 2002. The 10-year yield, meanwhile, scaled to a fresh 2007 high near 5.3%. Those moves pushed the Dow down more than 100 points, while the S&P 500 and Nasdaq slid 0.2% and 0.1%, respectively. Oil prices tumbled on the same day even as equities weakened.
Fed comments ease rate-hike fears
New York Federal Reserve President John Williams offered late Tuesday remarks that appeared to calm some fears of higher central bank rates, at least for now. According to CNBC: "there is no need for urgency, and we have time to gather more information" before the Fed's October meeting. The CME Group's FedWatch tool shows a 49% chance of a quarter-point rate hike next month, down from 71% on Monday.
PCE data looms as the quarter closes
Traders are now looking ahead to Wednesday's release of the August Personal Consumption Expenditures price index, the Fed's preferred inflation gauge. Economists polled by Dow Jones expect the metric to rise 0.3% for the month, putting the annual pace at 3.7%. Wednesday also marks the last day of September and of the third quarter: for the month, the S&P 500 and Dow are tracking for declines while the Nasdaq is up more than 1%. For the quarter, the S&P 500 and Nasdaq are up 2%, while the Dow is off nearly 2%.
Source: CNBC (US Top News and Analysis)
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