U.S. Stocks Open Lower as Bond Yields Rise

U.S. stocks opened lower on Friday after Wall Street closed largely unchanged the previous day amid soft trading volumes in a holiday-shortened week. Amid the absence of market-moving cues, investors reacted to a slight rise in U.S. government bond yields, including the benchmark. However, a robust seven-year note auction in the early afternoon yesterday helped ease yields somewhat. The 10-year Treasury yield stands at 4.59% as of Friday morning.

Higher yields make bonds more attractive relative to equities, prompting a shift in investor capital away from tech stocks. Rising yields also translate into increased borrowing costs, which can constrain spending on innovation and expansion, further squeezing profit margins. The Labor Department reported a decrease of 1,000 in initial applications for state unemployment benefits, bringing the seasonally adjusted figure to 219,000 for the week that ended on December 21. This figure is lower than the 224,000 claims that economists had predicted for the same week. Meanwhile, the number of individuals receiving benefits after their first week of aid, which serves as an indication of hiring, increased by 46,000. This brought the seasonally adjusted total to 1.910 million for the week that ended on December 14, the highest since November 2021. Economists had previously anticipated the number of these continued claims to be 1.880 million. Contrasting signals from the data backs the Fed’s view of leaning toward a cautious approach, holding rates steady while monitoring labor market trends.

Portugal Últimas Notícias, Portugal Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Wall Street stocks end lower after inflation data, tech stocks push Nasdaq downWall Street stocks end lower after inflation data, tech stocks push Nasdaq down
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »

European Stocks Set for Lower Open as Investors Await Fed DecisionEuropean stock markets are poised for a downward start on Wednesday as investors eagerly anticipate the U.S. Federal Reserve's latest monetary policy announcement. Traders will closely scrutinize the Fed's Summary of Economic Projections and Chair Jerome Powell's press conference for insights into the future direction of interest rates, particularly in light of persistent inflation.
Fonte: NBCDFW - 🏆 288. / 63 Consulte Mais informação »

European Stocks Set to Open Lower Ahead of Fed DecisionInvestors are bracing for the Federal Reserve's latest monetary policy announcement, which is expected to impact global markets. The decision will also be scrutinized for clues on future rate adjustments and the outlook for inflation.
Fonte: NBCNewYork - 🏆 270. / 63 Consulte Mais informação »

US stocks open lower after Christmas holidayUS stocks open lower after Christmas holiday
Fonte: Investingcom - 🏆 450. / 53 Consulte Mais informação »

CNBC Daily Open: U.S. stocks start December chilly; Korea stocks tumble on political chaosDecember may have triggered the thawing of Mariah Carey, but stocks are beginning the month chilly, though unlikely they’ll remain in permafrost this…
Fonte: NBCNewYork - 🏆 270. / 63 Consulte Mais informação »