U.S. Stock Futures Lower Amid Inflation Worries, 10-Year Yield Hits 2023 Highs
By On Thursday evening, U.S. stock futures were trading in the red, following the close of the major benchmark indices, which had declined due to investor concerns over inflation resulting from higher-than-expected producer price index data.[0] The Dow Jones Industrial Average (DJIA) shed 431.20 points, or 1.3%, to 33,696.9, the S&P 500 fell 57.2 points or 1.4% to 4,090.4, and the Nasdaq Composite shed 214.8 points or 1.8% to 11,855.8.[1]
By 6:55pm ET (11:55pm GMT) Dow Jones Futures fell 0.2%, S&P 500 Futures lost 0.3% and Nasdaq 100 Futures were down 0.4%.[1] At the start of trading, the Nasdaq Composite had fallen 138 points to 12,253, representing a decline of 1.1%. The Dow Jones Industrial Average dropped 333 points to 33,533, down 1%, and the S&P 500 had dipped 37 points to 4,050, a 0.9% decrease.[2]
The yield on 10-year Treasury bonds increased by 6 basis points to 3.89%.[3] The yield on the 10-year note rose to 3.93%, its highest since November and nearing the 4% mark.[4] The yield on 10-year Treasury bonds has reached its highest level since 2023, having climbed from a low of 3.33% on[4]
Last week, investors took a look at the quarterly financials of Walmart (WMT) and the Home Depot (HD) to assess the strength of the U.S. consumer, even with the persisting inflation. This was highlighted by the impressive retail sales data from January.[5] On Tuesday morning, Walmart cautioned that they are not optimistic regarding the economy, and that consumers looking for cheaper products due to inflation could have a negative influence on their margins.[5] The large retailer also gave a full-year earnings outlook that was lower than what analysts had predicted.[6] The share price dropped approximately 1.8% at the beginning of trading.[5]
Later in the week, Walmart Inc (NYSE:WMT), Home Depot Inc (NYSE:HD), Medtronic (NYSE:MDT), and Palo Alto Networks Inc (NASDAQ:PANW) will be releasing their earnings reports.[2] DoorDash Inc (NYSE:DASH) saw a 5.2% increase in its stock price after announcing a Q4 loss of $1[0]
0. “Dow futures fall on inflation fears, Doordash pops 5.2% after earnings” Yahoo Life, 16 Feb. 2023, https://www.yahoo.com/lifestyle/dow-futures-fall-inflation-fears-190002651.html
1. “Stock Market News Today: Stocks Open Shortened Week on a Sour Note” TipRanks, 21 Feb. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-in-red-ahead-of-fomc-minutes
2. “Dow futures slip ahead of holiday, FOMC minutes in focus By Investing.com” Investing.com Canada, 20 Feb. 2023, https://ca.investing.com/news/stock-market-news/dow-futures-slip-ahead-of-holiday-fomc-minutes-in-focus-2906328
3. “Stock market news today: S&P 500 on track for 3rd losing session” Markets Insider, 21 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-dow-nasdaq-fed-rates-warning-crash-2023-2
4. “Dow Jones Futures Fall, Yields Near Key Level On Fed, Inflation Fears; Tesla, HubSpot In Focus | Investor's Business …” Investor's Business Daily, 17 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-fall-yields-near-key-level-fed-inflation-tesla-hubspot-in-focus/
5. “Stock market news today: Stock futures tumble after losing week for S&P 500, Dow” AOL, 21 Feb. 2023, https://www.aol.com/stock-market-news-today-stock-110046270.html
6. “Stock market news today: Stock futures tumble after losing week for S&P, Dow” Yahoo News, 21 Feb. 2023, https://news.yahoo.com/stock-market-news-today-february-21-2023-110046104.html
