Red Shades on Wall Street
As Monday kicked off a week shortened by the holiday, futures for major stock indices witnessed a modest dip.
Key Events on the Horizon
The S&P futures (SPX) saw a decline of -0.1%, while Dow futures (INDU) and Nasdaq 100 futures (NDX:IND) tumbled by -0.2%.
Insights on Market Sentiment
Deutsche Bank’s Jim Reid labeled the imminent release of the “monthly US personal income and spending report” as a significant event during a month when markets reach closure, emphasizing its importance post-Q1 performance assessment.
Fed Headline in Focus
Federal Reserve Chairman Jay Powell is set to deliver a speech on Friday following his notable commentary regarding the potential impact on core PCE. Powell’s statement hinting at a substantial month-over-month print for core PCE has left analysts cautious about a possible downside risk.
Trends in Treasury Yields
Yields in the bond market experienced an upward trend, with the 10-year Treasury yields (US10Y) climbing 3 basis points to 4.23% and the 2-year yield (US2Y) ascending 2 basis points to 4.62%.
Eyes on Housing Figures
Traders anticipated the release of February’s new home sales figures early in the trading session. Projections indicated an expected increase to an annual rate of 675K.
Interpretation of Market Trends
Analyst Paul Donovan from UBS noted the expected sales figures for housing, highlighting their resemblance to figures from 2018 and 2019. The consistency in sales numbers, despite changes in interest rates, suggests a potential shift in the interest rate sensitivity of the US economy.