The move higher in bond yields has been absorbed by traders.
AP Photo/Richard Drew
US futures fell on Wednesday ahead of a series of data releases, while oil prices were flat after rising on Tuesday despite President Joe Biden announcing the release of 50 million barrels from strategic reserves.
The S&P 500 futures were down by 0.12%. After the index fell on Tuesday, the futures for the 100 were 0.05% lower.
China's CSI 300 closed 0.07% higher but Tokyo's Nikkei fell 1.58% after reopening from a holiday. The Europe's Stoxx 600 was flat in early trading.
After rising close to 3% the previous day, the US benchmark, West Texas Intermediate crude oil, was little changed at $78.48 a barrel, while the international benchmark, Brent crude, was little changed at $82.50 a barrel.
Despite the White House announcing that the US will release oil from its strategic reserves over the coming months, the increases on Tuesday came.
The Biden administration wants to cool gas prices, which have risen sharply on the back of a strong rally in crude oil.
Over the last year, the price of US and global oil has risen 70% as the Organization of the Petroleum Exporting Countries has held down supply, while demand has rebounded strongly as the coronaviruses crisis has abated in advanced economies.
"Biden's decision to release 50 million barrels from December was below expectations and certainly does not go far enough to address the imbalance between demand and supply," said Victoria Scholar, head of investment at Interactive Investor.
She said that the global benchmark could possibly test the October highs once again around $85 a barrel.
The chief investment strategist at Oppenheimer told us that the 4 sectors of US stocks that are his top picks in today's market environment, and why investors should be buying both value and growth.
The stock market has had a rocky week as investors reacted to the rise in bond yields and bets that the Federal Reserve will become more aggressive in controlling inflation after Powell was nominated for a second term as chair.
Tech stocks have suffered as investors have become more concerned about inflation and increased their bets that the Fed will raise interest rates next year. When borrowing costs are low, technology company stocks do better.
The Federal Reserve minutes, initial jobless claims, new home sales and consumer sentiment are all due on Wednesday.
The yield on the bond fell slightly on Wednesday. The yield on the 10-year US Treasury note was down 2 basis points to 1.645%, having hit a one-month high of 1.68% on Tuesday.
The dollar index rose as investors anticipated tighter monetary policy from the Fed. Dollar denominated assets are more attractive when interest rates are higher.
Business Insider has an original article.
