US Stock Market Today LIVE: The US stock futures indicated a mildly positive start on Wednesday, 20 May, after remaining under pressure for the past three straight sessions, weighed down by rising bond yields and a lack of progress in negotiations between the US and Iran, which continued to keep market sentiment cautious.
The positive start came after Wall Street ended in the red over the last three trading sessions, weighed down by rising bond yields and a lack of progress in negotiations between the US and Iran, which continued to keep market sentiment cautious.
Higher-for-longer rate fears weigh on technology stocks
The 30-year Treasury yield climbed one basis point on Wednesday to 5.19%, marking its highest level in nearly 19 years. Meanwhile, the 10-year Treasury yield was little changed at 4.67% after touching a 16-month high of 4.7% in the previous session.
Higher bond yields have continued to cap Wall Street’s rally as speculation intensified that the US Federal Reserve may opt for another rate hike before year-end rather than a rate cut.
Technology stocks have so far supported Wall Street’s rally, but rising bond yields are increasingly weighing on the sector, as valuations remain heavily dependent on expectations of strong future earnings growth.
