Stock index futures slipped on Friday, while yields inched down, as investors gear up for major earnings from big banks.
S&P 500 futures (SPX) -0.6%, Nasdaq 100 futures (NDX:IND) -0.8%, and Dow futures (INDU) -0.5%.
The 10-year Treasury yield (US10Y) fell 9 basis points to 4.50%. The 2-year yield (US2Y) fell 8 basis points to 4.88%.
See how Treasury yields have done across the curve at the Seeking Alpha bond page.
Equities recovered some ground on Thursday, benefitting from a cooler-than-expected producer inflation print, which soothed sentiment, and a renewed tech rally, which propelled the Nasdaq to close at a record high.
“It’s been a volatile 24 hours in markets, with bonds continuing to struggle thanks to concerns about inflation, whilst equities saw a tech-led rebound that meant the Nasdaq closed at an all-time high,” said Deutsche Bank’s Henry Allen.
Although bonds continued to sell off, a renewed tech rally saw equities recover in the latter half of the US session ahead of the earnings season kicking off in full today, Allen added.
“Investors are coming to grips with the fact that the Federal Reserve is content to hold fire on reducing interest rates for the moment, as evidenced by a new consensus which points to two cuts this year, as opposed to the six initially predicted,” said Richard Hunter from Interactive Investor.
The University of Michigan Consumer Sentiment Index is scheduled to hit during market hours. Economists expect a slight fall to 79 for April from 79.4 reported in March.
“We look for a small decline in the headline Michigan consumer sentiment survey to around 79 in April, from 79.4, given the recent climb in gas prices,” said Pantheon Macroeconomics.
JPMorgan (JPM) dipped as the stocks dips guidance remains little changed in a Q1 earnings beat. At the same time Wells Fargo (WFC) ticked up after Q1 earnings topped Wall Street’s consensus.