As U.S. futures traded mixed on Tuesday following a weak trading session, concerns about the Federal Reserve’s monetary policy path were reignited by strong retail sales data. Futures on the Nasdaq 100 (NDX) were up 0.02% at 3.24 a.m. EST, April 16, while those on the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) were down by about 0.02% and 0.07%, respectively.
Yesterday, all major indices were in the red, with the Dow Jones down around 0.7%. The S&P 500 and the Nasdaq Composite dipped 1.2% and 1.8%, respectively, as the benchmark 10-year U.S. Treasury yield crossed 4.6%, its highest level since November. This rise was driven by expectations that the Fed would maintain higher interest rates for an extended period, along with escalating tensions in the Middle East spooking investors.
Today, investors will closely monitor March’s Industrial Production report, a key indicator of GDP growth and overall economic health. Additionally, top companies like Bank of America (BAC), Morgan Stanley (MS), UnitedHealth (UNH), Johnson & Johnson (JNJ), and United Airlines (UAL) are set to release their quarterly results.
In major stock market news from yesterday, Tesla’s (TSLA) shares fell 5.6% due to layoffs, while Goldman Sachs (GS) closed 3% higher as its Q1 results exceeded estimates. The U.S. 10-year treasury yield was up near 4.63%, and WTI crude oil futures trended higher around $85.47 per barrel amid Middle East tensions.
Elsewhere, European indices opened lower today due to uncertainty about the Fed’s plans and ongoing geopolitical tensions. In Asia-Pacific markets, tension between Iran and Israel, along with concerns about China’s uneven economic recovery, led to a negative close. Hong Kong’s Hang Seng index was down 2.12%, while China’s Shanghai Composite and Shenzhen Component indices traded lower by 1.65% and 2.29%, respectively. Japan’s Nikkei and Topix indices also declined by 1.94% and 2.04%, respectively.
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