U.S. stock futures struggled Monday after a strong two-week run as bond yields continued to back up.
What’s happening
-
Futures on the Dow Jones Industrial Average
YM00,
+0.02%
rose 29 points, or 0.1%, to 34788
-
Futures on the S&P 500
ES00,
-0.02%
fell by 3 points, or 0.1%, to 4533
-
Futures on the Nasdaq 100
NQ00,
-0.13%
fell 47 points, or 0.3%, to 14709
The Dow Jones Industrial Average
DJIA,
+0.44%,
S&P 500
SPX,
+0.51%
and Nasdaq Composite
COMP,
-0.16%
each registered gains last week, with the S&P 500 rising 8% over the last two weeks, the best stretch of that duration since the period ending Nov. 13, 2020.
What’s driving markets
The market remains focused on developments surrounding Russia’s invasion of Ukraine. Ukraine President Volodymyr Zelenskyy said his country could declare neutrality and offer security guarantees to Russia as he sought a direct meeting with Russian President Vladimir Putin. Talks between the two sides are due to resume in full in Turkey on Tuesday.
The White House walked back remarks from U.S. President Joe Biden in which he said that Putin cannot remain in power.
Traders also were looking at news from the number-two economy China, which locked down its financial capital, Shanghai, to response to rising COVID-19 cases. That left oil prices
CL00,
-4.06%
4% lower on related demand worries.
Bonds continued to sell off, with the yield on the 10-year Treasury
TMUBMUSD10Y,
2.494%
trading above 2.50%. Yields move in the opposite direction to prices. The global bond market is heading for its worst returns since the Marshall Plan was implemented.
According to an analysis from MSCI, value and lower-sized stocks have done better during changes of at least 200 basis points in the federal funds rate since 1975, while growth stocks have struggled.
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