US futures keep higher ahead of European trading
The market is in a calmer mood as the bond selloff eases for now
Yesterday was another taste of the reflation theme as equities saw some rotation play with tech stocks being dragged lower while value stocks on the Dow moved up.
- S&P 500 futures +0.5%
- Nasdaq futures +0.8%
- Dow futures +0.5%
- Russell 2000 futures +0.8%
Moving forward, it will be increasingly tough to talk about US equities without talking about the broader indices outside of tech; given the focus of the market.
For today, the bond market is looking calmer after the early rout yesterday ended up being a more modest selloff by the end of the day. That is feeding to some calmer tones across the equities space as well with US futures keeping higher as seen above.
That should also reverberate calmer tones to European trading and with risk sentiment keeping firmer, that could very well heap some added pressure on the dollar - which is looking rather vulnerable across the board at this stage.
An interesting fact to trading yesterday is that the S&P 500 index posted its fifth consecutive daily loss (though it sure doesn't feel like it). The last time that happened was back in February 2020 when the panic from the pandemic struck.
I don't think it is a signal of what is to come but just a rather interesting anecdote given how much the market has been accustomed to easy money over the past year.