Wall Street started the week on something of a mixed note with gains for the major indices proving difficult to sustain as bond yields resumed their march higher. As it stands, futures markets are suggesting we’re going to see those downside pressures sustained, with news overnight from the IMF revising down global growth forecasts as a result of trade tensions again likely to be taking a toll on general sentiment. Data from the US remains thin on the ground again today following yesterday’s hiatus with the Columbus Day holiday – observed by the Fed but not the underlying equity markets - so it’s questionable as to where fresh direction is going to come from in the short term.
Bond yields can therefore expect to remain very much in focus and with the US 10 year Treasuries having touched 7 year highs during yesterday’s session, further advances here are likely to weigh on stocks. It’s also worth noting that today marks the 11 year anniversary of the top of the bull market that preceded the last crash, when the DOW hit a closing high of 14,165. At the time those were seen as dizzying levels, but the fact is we’re at almost twice that level just over a decade later.
Ahead of the open we’re calling the DOW down 22 at 26465 and the S&P down 3 at 2881.
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Stocks soar, powered by first-rate earnings and a dazzling run of economic data; Gold plays catch as G10 falls flat while oil basks in the afterglow