Futures Pointing To Mixed Open On Wall Street

Following the substantial volatility seen last week, U.S. stock futures are currently pointing to a mixed open for the markets on Monday. The Dow futures have risen by 90 points, while the Nasdaq futures are down by 93 points.

The mixed performance by the futures comes as traders continue to pay close attention to activity in the bond markets.

The yield on the benchmark ten-year note has shown a notable move to the upside, once again climbing above the 1.6 percent level.

The increase in yields comes after the Senate voted along party lines on Saturday to approve a new $1.9 trillion coronavirus relief bill.

The bill, which includes $1,400 direct payments and an extension of unemployment benefits, is expected to be approved by the House later this week.

Bond yields have moved sharply higher in recent weeks, raising concerns about the outlook for interest rates and inspiring some traders to cycle out of high-flying tech stocks.

Shortly after the start of trading, the Commerce Department is scheduled to release its report on wholesale inventories in the month of January. Wholesale inventories are expected to jump by 1.3 percent.

Stocks went on a roller-coaster ride during the trading session on Friday before ending the day sharply higher. With the strong upward move on the day, the major averages partly offset the steep drop seen in previous sessions.

The tech-heavy Nasdaq tumbled to its lowest intraday level in nearly three months before rebounding to end the day up 196.68 points or 1.6 percent at 12,920.15. The Dow also jumped 572.16 points or 1.9 percent to 31,496.30 and the S&P 500 surged up 73.47 points or 2 percent to 3,841.94.

For the first week of March, the major averages turned in a starkly mixed performance. While the Nasdaq tumbled by 2.1 percent, the Dow shot up by 1.8 percent and the S&P 500 climbed by 0.8 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan’s Nikkei 225 Index fell by 0.4 percent, while China’s Shanghai Composite Index plunged by 2.3 percent.

Meanwhile, the major European markets have moved to the upside on the day. While the German DAX Index has jumped by 1.5 percent, the French CAC 40 Index is up by 0.9 percent and the U.K.’s FTSE 100 Index is up by 0.1 percent.

In commodities trading, crude oil futures are edging down $0.02 to $66.07 a barrel after spiking $2.26 to $66.09 a barrel last Friday. Meanwhile, after dipping $2.20 to $1,698.50 an ounce in the previous session, gold futures are sliding $10.30 to $1,688.20 an ounce.

On the currency front, the U.S. dollar is trading at 108.69 yen versus the 108.31 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1870 compared to last Friday’s $1.1915.

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