Treasury yields continued to rise, putting pressure on stocks as the S&P 500 and Nasdaq endured another week of losses. However, there was positive news in the entertainment industry as Hollywood writers and studios reached a tentative deal to end a prolonged strike. This development led to gains for companies like Warner Bros., Paramount, Disney, and Netflix in after-hours trading.
Investors are closely watching economic data, including an updated reading for second-quarter GDP due on Thursday, consumer spending data on Friday, and the Federal Reserve’s preferred inflation gauge. These indicators will provide insights into the state of the economy and potentially impact investor sentiment.
Stock futures pointed to a lower opening, suggesting that the losing streak for the S&P 500, Nasdaq 100, and Dow Industrials could extend for a fifth day. Benchmark Treasury yields were on track to exceed last week’s almost 16-year closing high, reaching towards 4.5%. The Federal Reserve’s recent indication that interest rates will remain at higher levels for a longer period of time has spooked investors and contributed to the increase in yields.
Oil prices were volatile, with Brent crude, the global benchmark, trading around $92 per barrel, after briefly touching $95 last week. The fluctuating prices reflect ongoing concerns about supply and demand dynamics and geopolitical tensions.
In overseas markets, European and Chinese stocks declined, while Japan’s Nikkei 225 saw a modest gain of less than 1%. These movements indicate mixed sentiment among global investors.
Overall, the market continues to grapple with various factors, including rising bond yields, economic data, and geopolitical developments. Investors will be closely watching upcoming reports to gauge the trajectory of the economy and the potential impact on asset prices.