REUTERS: Major U.S. stock indexes were headed for a higher open on Tuesday with the Nasdaq set to rebound after a steep selloff in the previous session, as U.S. bond yields retreated and investors scooped up beaten-down technology stocks.
U.S. 10-year Treasury bond yields eased to 1.54per cent after hovering near 13-month highs of 1.613per cent in the prior session. Longer-dated yields have jumped over the last month as investors price in faster-than-expected economic rebound and higher inflation. "Tech stocks are overdue for some kind of bounce after the downfall they have had so far with most investor maintaining a positive outlook on tech stocks in the medium to longer term," said Michael Sheldon, chief investment officer at RDM Financial in Westport, Connecticut."Potential headwind for the market is if interest rates rise further from this point over the short period ... since they have risen too fast in too little time.
The rise in yields has accelerated a rotation from"stay-at-home" winners to stocks primed to benefit from an economic reopening, helping the blue-chip Dow hit an intraday record high on Monday.
Sigh.