Dow, S&P, Nasdaq, Rising After Drop; Bond Yields Recovering; Bitcoin at Record High; Movers
U.S. stocks were on course to pare back some of their recent losses Thursday, while Treasury yields were holding firm after a weak 20-year bond auction rattled investors during the previous trading session.
Futures tracking the Dow Jones Industrial Average were flat. S&P 500 futures ticked up 0.1%, and contracts tied to the tech-heavy Nasdaq 100 climbed by the same amount.
The three blue-chip indexes tumbled on Wednesday, following weak demand for a sale of 20-year government bonds. Investors are worried that the Trump administration’s signature tax and spending bill could be bad news for the economy, particularly after Moody’s took away its triple-A rating on U.S. debt.
Traders will be hoping that Thursday marks an end to the bond-market rout. The yield on the 10-year U.S. Treasury note fell 2 basis points to 4.585% in early trading, while 30-year yields were flat, having hit their highest level since October 2023 on Wednesday.
Cryptocurrency Bitcoin was up 2.1% over the past 24 hours to $110,919, having hit an all-time high Wednesday. The U.S. Dollar Index, which gauges the greenback’s strength against a basket of six other currencies, ticked up 0.1%.
Aside from the debt anxieties, investors are in a good mood, with the panic sparked by President Donald Trump’s tariffs seemingly over and stocks likely set for their usual summer lull.
Wednesday’s selloff was “more a sign of the market suffering from a touch of exhaustion, as opposed to being the beginning of a change in the longer-running trend,” said Michael Brown, a strategist at the foreign-exchange brokerage Pepperstone. “Peak trade uncertainty remains in the rear view mirror, incoming data remains resilient for the time being, with incoming earnings also not as bad as had been feared. Hence, I remain comfortable to sit here in ‘dip buying’ mode.”
Flash purchasing managers’ index data will give investors a better sense of how the U.S. economy is holding up after months of tariff uncertainty, while fashion house Ralph Lauren and UGG maker Deckers Outdoor are among the companies set to report quarterly results.