Traders work on the trading floor of the New York Stock Exchange on February 1, 2024.
Brendan McDermid | Reuters
Stock futures were little changed on Monday, with rising U.S. Treasury yields limiting meaningful gains for stocks as investors braced for upcoming inflation data.
Futures and S&P 500 Index Hovering around the flat line. Nasdaq 100 Futures rose 0.1%, while Dow Jones Industrial Average Futures Up 14 points, or 0.04%.
Stocks ended largely unchanged on Monday, with the S&P 500 closing slightly down 0.04%. The 10-year Treasury yield topped 4.4% as investors awaited Wednesday’s Consumer Price Index report for more information on how the Federal Reserve’s policies will affect inflation. Economists polled by Dow Jones expected inflation to rise 0.3% in March.
“If (CPI) surprises and continues to push inflation expectations higher, I think That becomes dangerous for the stock market.”
Amoroso added that the rise in bond yields was triggered by improving growth prospects and a stronger-than-expected jobs report on Friday. However, she warned that a continued rise in 10-year Treasury yields could signal concerns about broader markets.
“If the move is contained to some extent, I think we’ll be OK despite the backup, but obviously if there’s anything close to a breakout of 4.8%, I think we’ll have to worry,” she said.
In economic releases, the National Federation of Independent Business will release the results of its small business survey on Tuesday. In addition to releasing the consumer price index on Wednesday, the Federal Reserve will also release the minutes of its March meeting on the same day.
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