U.S. Futures Edge Up 0.5% as Treasury Eases Bond Stress and Debt Tops $40 Trillion
Updated
Updated · Yahoo Finance UK · Aug 20
U.S. Futures Edge Up 0.5% as Treasury Eases Bond Stress and Debt Tops $40 Trillion
3 articles · Updated · Yahoo Finance UK · Aug 20
Summary
Nasdaq 100 futures rose 0.5%, with S&P 500 futures up 0.2% and Dow futures 0.1%, as investors took relief from calmer Treasury markets despite a hawkish Fed backdrop.
The lift followed the Treasury's decision to double buybacks of longer-dated government debt, a move that pulled yields lower after the 30-year Treasury yield hit its highest level in nearly 20 years.
Fed minutes kept rate-hike risk alive: three of 12 voting policymakers backed a quarter-point increase in July, and many across the 19-member committee said more tightening may be needed if inflation stalls.
Fresh fiscal strain also stayed in focus after U.S. gross national debt crossed $40 trillion for the first time, alongside renewed Iran tensions and scrutiny of Walmart results for signs on consumer spending.
Capital Economics said Treasuries remain secondary to the AI trade in driving U.S. stocks, suggesting bond-market swings may not dislodge the broader equity narrative yet.