U.S. stock futures rose Wednesday as bond yields fell and traders eyed publication later in the day of the Federal Reserve’s minutes from its July rate-setting meeting.
How are stock-index futures trading
-
S&P 500 futures
ES00,
+0.19%
rose 11 points, or 0.3%, to 4465 -
Dow Jones Industrial Average futures
YM00,
+0.19%
gained 81 points, or 0.2%, to 35088 Nasdaq 100 futures
NQ00,
+0.25%
added 49 points, or 0.3%, to 15155
On Tuesday, the Dow Jones Industrial Average
DJIA
fell 361 points, or 1.02%, to 34946, the S&P 500
SPX
declined 52 points, or 1.16%, to 4438, and the Nasdaq Composite
COMP
dropped 157 points, or 1.14%, to 13631.
What’s driving markets
Equity-index futures rose early Wednesday as bond yields pulled back from recent highs.
The S&P 500 has fallen eight of the last 11 sessions after 10-year Treasury yields
BX:TMUBMUSD10Y
moved up toward 4.25%, close to their highest levels since 2008, amid concerns about an increased supply of government paper and as economic data continues to generally surprise to the upside.
Higher yields raise implied borrowing costs for companies and households, and provide a more attractive alternative to stocks.
“Rising Treasury yields have dampened the outlook for the equity market. At the same time, concerns about China’s faltering economy continued to weigh commodity and currency markets after the latest batch of weaker-than-expected data,” said Stephen Innes, managing partner at SPI Asset Management.
The 10-year Treasury yield was down 2.5 basis points to 4.193%, Wednesday, but analysts remained wary of any renewed rally.
“If U.S. yields continue to drift higher from here, we will likely feel more air pockets that could have increasingly significant implications for broader risk markets,” Innes added.
The next big catalyst for equity and bond markets is likely to be minutes of the Federal Open Market Committee meeting held last month, due for release at 2 p.m. Eastern, which may provide more insight into the central bank’s thinking.
U.S. economic updates set for release on Wednesday include housing starts and building permits in July, due for release at 8:30 a.m.. Industrial production and capacity utilization for July arrives at 9:15 a.m.
Retailer Target
TGT,
will deliver its results on Wednesday. Shares in Tesla
TSLA,
are bucking the market trend, falling 1% as concerns about price cuts in China continue to weigh.