US Open: Stocks Mixed As Bond Yields Remain Elevated
Wall Street trading got off to a mixed start amid optimism about a possible reopening of the US economy after President Joe Biden said he hopes that Americans will be able to freely travel and gather with their families for the 4th of July long weekend.
As of 1525 GMT, the Dow Jones Industrial Average was down 0.03% at 32,769.51, while the S&P 500 was 0.10% weaker at 3,939.56, while the Nasdaq Composite came out the gate 0.23% stronger at 13,350.69.
The Dow Jones opened 9.13 points lower on Monday, taking a tiny bite out of gains recorded during last week’s final trading session.
The US 10-year Treasury hit its highest level since February 2020 on Friday, reaching 1.642%. While yields still remained elevated, they had come off the aforementioned high after the open on Monday, trading down at around 1.61%.
Boosting sentiment early on Monday was news that the Internal Revenue Service had begun processing $1,400 direct payments to Americans over the weekend.
Also in focus, air travel in the US hit its highest level in more than twelve months over the weekend amid the US’ Covid-19 vaccine roll-out, helping stocks most likely to benefit from a swift economic recovery from the Covid-19 pandemic lead gains at the open, with American Airlines and United Airlines both up more than 8%.
On the macro front, manufacturing activity in the New York jurisdiction improved more than expected in March, according to a survey released on Monday. The New York Fed’s Empire State index rose to 17.4 from 12.1 in February, beating expectations for a reading of 14.5 and hitting its highest level since last summer. This was also the ninth consecutive positive reading.
Market participants were also patiently awaiting a decision on interest rates from the Federal Reserve on Wednesday, with the bond market likely to take cues from the central bank in the week to come.
No major corporate earnings were slated for release on Monday.