U.S. stock futures nudged higher early Monday, as hopes the Federal Reserve has finished raising borrowing costs continued to underpin sentiment.
The benchmark 10-year U.S. Treasury yield BX:TMUBMUSD10Y, which just a few weeks ago had traded at a fresh 16-year high above 5%, at one point on Friday dipped below 4.5%. “Equities are playing second fiddle as Treasury bonds are unquestionably the primary drivers, with the S&P 500 merely tagging along for the ride,” said Stephen Innes, managing partner at SPI Asset Management.
It’s a slow start to the week in terms of economic data, with just the Federal Reserve’s senior loan officer survey for October, due for release at 2 p.m.. Eastern. Federal Reserve Governor Lisa Cook is expected to speak at Duke University at 11 a.m..