U.S. stock index times were mixed Wednesday as investors watched bond yields and waited for inflation data to show whether consumer prices are starting to rise sharply.
What do major indexes do?
-
The future of the Dow Jones YM00 business average,
+ 0.34%
rose 110 points, or 0.4%, to 31,921. -
S&P 500 futures ES00,
+ 0.08%
it rose 4.70 points, or 0.1%, to 3,878. -
Nasdaq-100 NQ00 futures,
-0.14%
margin down 12.50 points, or 0.1%, to 12,776.25.
The tech-heavy Nasdaq Composite COMP,
it jumped 464.66 points, or 3.7%, Tuesday for its biggest one-day percentage gain since Nov. 4, according to Dow Jones Market Data. The kick came a day after the index fell to a correction area, a 10% pullback from a recent peak. An Dow DJIA,
rose 30.30 points, or 0.1%, and the S&P 500 SPX,
logging gain 1.4%.
What drives the market?
U.S. Treasury yields were back on the rise after they breathed on Tuesday, updating the dynamic that has been moving circulation out of high-tech stock stocks and other growth sectors and into more value-based, value-based equalities.
Yield on 10-year Finance note TMUBMUSD10Y,
it went up around 2 basis points at 1.561%. Yields have been up for five weeks just as inflation has risen.
“The recent rally in bond yields has hurt most technology stocks, due to their high valuations,” Charalambos Pissouros, senior market analyst at JFD, said in a note.
“High-growth technical firms are valued based on projected earnings for years to come, so as yields rise, their discounted discounted value declines. The opposite is true when a product returns. That’s why Nasdaq was the main winner yesterday, ”said Pissouros.
Higher yields are moving as investors look to boost U.S. economic growth and to accelerate inflation, at least in the short term. The OECD said this week that President Biden’s coronavirus aid package will contribute around one percentage point to global economic growth in 2021 and revised America’s growth rate up to 6.5% from 3.2%.
The House is expected to complete a passage of a $ 1.9 trillion COVID-19 relief bill as early as Wednesday, which will come on top of aid spending rounds.
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The U.S. February consumer price index is due at 8:30 a.m. East. Economists expect it to show a 0.4% rise after a 0.3% rise in January. Core CPI is seen rising up 1.7% from 1.4% per annum. Core CPI, which eliminates volatile food and energy prices, is expected to rise 0.1% after a flat reading in January.
Economic Forecast: The US economy is ready to give in again – so is inflation
Federal budget data is set for release at 2pm It is expected to show a $ 255 billion deficit.
Which companies are the focus?
-
General Electric Co.
GE,
-1.20%
Shares rose 2.8% in pre-sale trading after agreeing to merge its airline rental business with AerCap Holdings NV Ireland as part of a deal worth more than $ 30 billion. Separately, GE said its board of directors would recommend shareholders approve a 1-for-8 stock split back, due to the company’s “major transformation” over several years. -
Shares of videogame seller Corp GameStop
GME,
+ 26.94%
they were up more than 8% in premarket trading after Tuesday’s rally brought the best-selling traders on the WallStreetBets Reddit forum to a record high since the end of January. - Corp. Roblox Corp. received a reference price of $ 45 a share from the New York stock exchange late Tuesday as the tween-centric game platform prepares to go public through listing just Wednesday. It trades under the RBLX ticker.
-
Sections of MongoDB Inc.
MDB,
+ 8.66%
rose 1.3% after the database company delivered results late Tuesday that surpassed Wall Street estimates while its outlook was much quieter. -
Qualtrics International Inc.
XM,
+ 7.34%
shares were down 3.7% after the cognitive management software company reported fourth-quarter fiscal results that surpassed analysts ’forecasts.