U.S. stock futures will go lower on Tuesday, suggesting markets breathe after a volatile move in shares and bonds.
S&P 500-linked futures slipped 0.2%, marking a pullback for the broader market index after rising on Monday on the best day since June. Futures tied to the Nasdaq-100 were 0.3% lower.
Investors say their focus is largely on central bank officials for issues on how monetary policy can move down the road. That confirms the desire for government bonds and for inflation-adjusted yields. A flood of easy money with the Federal Reserve since the outbreak hit the pandemic last spring has helped restore bonds on bonds and spurred a rally in stock markets for the most part. -part of the past year.
This surprise seemed to stop a few weeks ago: money managers changed their records in anticipation of an economic rebound and a possible rise in inflation, spurring bond sales. the government. Yields jumped last week as bond prices fell, leading to jitters in stocks. Bond markets have since calmed, and stocks have climbed higher on Monday.
“We are just breathing after yesterday,” said Fahad Kamal, chief investment officer at Kleinwort Hambros.