US pre-open: Stocks mixed as yields slip from recent highs
Wall Street futures were mixed ahead of the bell on Monday as the yield on the benchmark 10-year Treasury note slipped from its recent 14-month high.
As of 1245 GMT, Dow Jones futures were down 0.07%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.18% and 0.70% firmer, respectively.
The Dow closed 234.33 points lower on Friday, with all three major indexes losing ground last week.
In focus on Monday, the 10-year Treasury yield fell four basis points to 1.68%, pressuring tech and growth stocks that had previously helped the Street bounce back from its Covid-19-induced sell-off early in 2020.
Optimism around vaccine rollouts across the US was also on investors' minds, with the rate at which Americans were getting inoculated continuing to climb in recent weeks. However, news that several states had actually seen an increase in new Covid-19 cases did put a slight dampener on sentiment.
As far as the next five days are concerned, Markets.com's Neil Wilson said: "Looking ahead to this week, the focus will remain on bond yields and inflation. In the wake of the FOMC last week the market is toying with just how far rates can go and how fast.
"This week we have Jay Powell's testimony on the CAREs Act with Janet Yellen, as well as speeches from Fed members Lael Brainard and Richard Clarida, both of which deal with the 'Economic Outlook and Monetary Policy'. They will reiterate how the Fed plans to stay in full accommodation mode until its employment goal is achieved."
On the macro front, the US economy contracted for the first time since last April in February, according to the Chicago Fed's national activity index, which fell to -1.09 last month from a revised 0.75 growth in January.
Still to come, existing home sales for February will follow at 1400 GMT.
A raft of central bank heads will speak throughout the course of the day also, with Federal Reserve chairman Jerome Powell delivering a speech at 1300 GMT, while Tom Barkins, Mary Daly, Randal Quarles and Michelle Bowman will make comments later in the day.