Dow futures tumble in stock selloff, yields slide

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Investors are bracing for a rocky session Thursday with U.S. stock futures down more than 1% as concerns mount over mixed economic data and an uptick of COVID-19 variants in Europe and Asia, and ahead of weekly jobless claims.

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Dow, S&P and Nasdaq Futures Fall 1%

Equities are falling in tandem with the 10-year Treasury yield, which traded as low as 1.258%, the lowest since Feb. 18.

At 8:30 am ET, weekly jobless claims data will be released. The number of people filing for first-time jobless benefits is expected to fall to 350,000, from last week’s pandemic low of 364,000. Continuing claims, which track the total number of unemployed workers collecting benefits, are anticipated to drop to 3.335 million, which would mark a new pandemic low.

On Wednesday, the minutes from the Federal Reserve’s June meeting showed the central bank has been caught off guard by the recent rise in inflation. However, while members expect inflation to climb above 2% in the near term, they still believe the gains are temporary.

FED OFFICIALS DISCUSSED TIMING OF TAPERING ASSET PURCHASES DURING JUNE MEETING, MINUTES SHOW

This boosted stocks as the Dow Jones Industrial Average rose 104 points, or 0.3%, while the S&P 500 and the Nasdaq Composite advanced 0.34% and 0.01%, respectively. Both the S&P 500 and the Nasdaq finished in record territory.

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