MU - S&P Dow Nasdaq futures edge up yields up with jobless claims ahead
2023-06-29 04:55:07 ET
Stock index futures were slightly higher Thursday with the path of rates still a hot topic.
S&P futures ( SPX ) +0.2% , Dow futures ( INDU ) +0.1% and Nasdaq 100 futures ( NDX:IND ) +0.2% were slightly in the green.
Rates continued to tilt higher after some hawkish central bank comments the previous day.
The 10-year Treasury yield ( US10Y ) rose 4 basis points to 3.75%. The 2-year yield ( US2Y ) rose 4 basis points to 4.76%.
Fed chief Jay Powell said that rates haven't been restrictive to long and said consecutive hikes were still a possibility.
"Those comments meant investors ratcheted up the chances of further tightening from the Fed over the months ahead," Deutsche Bank's Jim Reid said. "In fact, futures are now pricing in a 79% chance of a July hike as of this morning, which is the highest probability to date. And looking further out, they’re increasingly discounting the chances of rate cuts at all this year, with pricing for the policy rate in December meeting now at a post-SVB high of 5.31%."
"In turn, that meant Treasury yields at the very front-end of the curve hit their highest levels of this cycle so far yesterday, with the 12m yield closing at 5.32%."
Jobless claims arrive before the bell. Economists expect a small rise to 266K.
The final measure of Q1 GDP hits at the same time. The Forecast is for a tick up to an annual growth rate of 1.4%.
"Investors tend not to focus on revisions, even as the revisions have tended to become wilder," UBS' Paul Donovan said.
Among active stocks, Micron ( MU ) was higher after a smaller-than-expected loss .
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S&P, Dow, Nasdaq futures edge up, yields up with jobless claims ahead