Tech Stocks Move Higher In Premarket Trading As Treasury Yields Pull Back
S&P 500 futures are moving higher as traders look ready to buy stocks after yesterday’s sell-off.
On Wednesday, U.S. inflation report shocked markets as it indicated that inflation grew by 4.2% year-over-year in April. Fed’s vice chairman Clarida stated that he was surprised by the report and but he needed to see more data. He added that he believed that the price spike was temporary but the Fed would track inflation expectations closely.
Meanwhile, inflation worries pushed the yields of 10-year Treasuries to the 1.70% level. The yields are still below highs near 1.77% that were reached back in March, but the bond market may quickly get to these levels if traders remain concerned about inflation.
The sell-off in the bond market has stopped, and yields have pulled back a bit, providing support to tech stocks. Nasdaq futures are gaining more than 0.5% in premarket trading. Most likely, tech stocks will remain very sensitive to bond market dynamics in the upcoming trading sessions.