RJO FuturesCast

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Equity

Stocks Decline on 10-Year Yield Jump

Posted 03/12/2021 9:18AM CTJeff Yasak

U.S. stock futures were trading lower Friday morning after a record gain in the Dow and S&P 500 as treasury yields continue to trek higher. Thursday saw the S&P and Dow make both record setting highs in intraday trading and the close with information technology and communication stocks leading the way. The S&P lost .04% with the tech heavy Nasdaq falling 1.4% while the 10-year yield rallied back to its high of the year of 1.61%, up 8 basis points over night. This increase in bond yields will put pressure on tech stocks as it reduces the value of their future profits. “Higher rates, less dovish central banks are now considered to be the single biggest threat of risk assets,” Ralf Preusser, Bank of America’s rates strategist, said in a note. With the passage of a US fiscal stimulus package and the blistering progress in vaccinations in the US, a number of key risks are falling by the wayside.”

Support today is 390500 and 386500 with resistance showing 397000 and 399700.

E-mini S&P 500 Mar ’21 Daily Chart
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Jeff Yasak

Senior Market Strategist
Since leaving the corporate world in 1995, Jeff has established a name for himself as a trusted financial advisor and trading advocate—leveraging his studies in finance from the University of Wisconsin-Madison and Loyola University, 25+ years of experience, and a passion for the industry to guide both novice and experienced traders in pursuit of achieving their own financial reward. Jeff began his career as a clerk in the S&P 500 pit at the Chicago Mercantile Exchange—fostering a deep interest in the options market that eventually drove him into the retail futures sector where he spent several years as a broker’s assistant before taking on clients of his own. Operating at the intersection of strategy and success, Jeff seeks to establish meaningful relationships with clients—synthesizing financial data and offering timely insight that informs critical decision-making surrounding money management and trading activities. Well-versed in the futures, securities, equities, and indices markets, Jeff is uniquely positioned to direct his clients to success. With a carefully cultivated combination of experience and expertise, he is able to connect with clients to better understand their goals and offer sound financial guidance that delivers notable bottom-line results.
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