US stock futures traded lower in the session on Tuesday on Wall Street after the sale of US government bonds fell.
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|I: COMP||NASDAQ COMPOSITIVE INDEX||13588,828646||+396.48||+ 3.01%|
Overnight, the Wall Street S&P 500 benchmark rose 2.4 percent, recovering most of its losses in the past week.
This happened after the sale of US government bonds weakened. This has helped allay investors’ fears that the cost of loans could rise, putting pressure on the US economic recovery.
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On the Wall Street, the S&P 500 rose to 3,901.82 in its biggest one-day gain since June 5. The Dow Jones industrial average gained 2% to 31,535.51. The Nasdaq composite rose 3% to 13,588.83. The yield on the 10-year treasure, or the difference between its market price and the payout if the investor holds it to maturity, has fallen to 1.43% after reaching its highest level in more than a year last week.
Shares fell in late February after a sharp rise in bond yields caused by a fall in their market price, fueling fears of higher inflation. Yields on the 10-year treasury rose to 1.5%. It was 1.41% on Tuesday.
Bond yields affect interest rates on mortgages and other loans.
They have climbed as investors have bet that coronavirus vaccination efforts will put economic growth back on track. This has fueled inflation fears and prompted investors to move money from bonds to stocks and other assets, which do better when consumer prices rise.
Investors are looking for more information on the US economic outlook when Federal Reserve officials give speeches this week. Lael Brainard, a proponent of loose monetary policy, will deliver a speech on monetary policy on Tuesday, and Fed Chairman Jerome Powell will speak on Thursday.
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They are also monitoring Washington after the House of Representatives approved President Joe Biden’s $ 1.9 trillion economic aid package earlier Saturday and sent it to the Senate. Includes one-off payments to the population and assistance to distressed businesses and local authorities.
Johnson & Johnson rose 0.5 percent after the Food and Drug Administration approved the company’s coronavirus vaccine, which does not require extremely cold cooling like those made by Moderna and Pfizer.
Asian stock markets, meanwhile, fell on Tuesday after Wall Street rose when a wave of investor worries about possible higher interest rates receded.
Tokyo, Shanghai, Hong Kong and Sydney fell into disrepair. Seoul advanced.
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“Asian markets are taking a breather this morning after leading to a recovery in global capital yesterday,” Jeffrey Halley of Oanda said in a report.
Also Tuesday, the Central Bank of Australia left its policy unchanged at its March meeting.
Japan, meanwhile, said employment had risen despite the state of emergency to deal with renewed coronavirus outbreaks, and South Korea reported higher factory performance.
The Shanghai Composite Index lost 1.5% to 3,497.78, while the Nikkei 225 in Tokyo fell 0.9% to 29,384.85. Hang Seng in Hong Kong fell 1.5% to 29,020.46.
Cospi in Seoul rose 0.4% to 3,024.16 after the government said factory production rose better than projected at 7.5% in January from a year earlier from 2.5% in January. December.
The S&P-ASX 200 in Sydney was down 0.4% at 6,762.30. The Indian Sensex opened 0.4% at 50,021.56. Markets in New Zealand and Southeast Asia rose.
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In energy markets, the US benchmark fell 79 cents to $ 59.85 a barrel in e-commerce on the New York Mercantile Exchange. The contract sank 86 cents to $ 60.64 on Monday. Crude Brent, used to price international oil, fell 81 cents to $ 62.88 a barrel in London. In the previous session, it fell 73 cents to $ 63.69 a barrel.
The dollar rose to 106.85 yen from 106.81 yen on Monday. The euro fell to $ 1.2021 from $ 1.2047.