Title: Stock Futures Dip as 10-Year Treasury Yield Rises, SolarEdge Shares Tumble
In a recent market development, stock futures dipped on Thursday evening due to the focus on a surge in the 10-year Treasury yield. Futures tied to the Dow Jones Industrial Average were down 0.09%, while S&P 500 futures fell nearly 0.2% and Nasdaq 100 futures dropped about 0.4%.
After-hours trading saw SolarEdge shares tumble by 20% as the company trimmed its third-quarter revenue guidance. On the other hand, Knight-Swift Transportation gained 13% after beating estimates in the third quarter on both the top and bottom lines.
This follows a volatile day for stocks, with the Dow shedding 0.75%, the S&P 500 losing 0.85%, and the Nasdaq Composite sliding nearly 1%. Additionally, the benchmark 10-year Treasury yield surged as high as 4.996%, reaching levels last seen in 2007. Notably, the 10-year yield has not surpassed the 5% threshold in 16 years.
Federal Reserve Chair Jerome Powell’s remarks in New York contributed to the unease in the stock market. Powell stated that inflation remains too high and lower economic growth may be necessary to bring it down, adding that he doesn’t believe rates are currently too high. He expressed his commitment, along with his colleagues, to sustainably reducing inflation to 2 percent.
Although Powell did not provide clear guidance on rates, the market speculation suggests that the central bank will refrain from raising rates in November. Fed fund futures pricing indicates a 92% probability that rates will remain unchanged at the conclusion of the November meeting, according to the CME FedWatch Tool.
Currently, the major averages are on track to register losses for the week, with the S&P 500 down 1.2%, the Nasdaq down 1.7%, and the Dow down 0.8%.
Looking ahead, investors will keenly await earnings results from Comerica, Regions Financial, and American Express. Additionally, oilfield services company SLB is set to report.
In the face of these market developments, it remains crucial for traders and investors to closely monitor the impact of the 10-year Treasury yield on stock futures, as well as the ongoing concerns about inflation and future monetary policy decisions.
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