Stock futures were mixed early Monday as traders eyed U.S. Treasury yields and global oil prices ahead of the release of the Federal Reserve’s September meeting notes later in the week. Futures tied to the Dow Jones Industrial Average ticked up 0.1%, or 46 points. S&P 500 futures were little changed, and Nasdaq-100 futures shed more than 0.1%. The central bank hiked its overnight rate by 0.25 percentage point last month. Investors will get a closer look at that decision on Wednesday, when the Fed releases the minutes from its September meeting. Meanwhile, oil prices were mixed on Monday. Brent crude futures rose 0.3% to trade at $102.67 a barrel, while US West Texas Intermediate crude was trading at $88.92 a barrel, down about 0.6%. On Monday, investors will also be watching the Institute for Supply Management’s services activity report. Stocks are coming off a week defined by surging Treasury yields and a surprisingly lackluster jobs report that helped ease concerns about another Fed rate hike this month. The data provided some relief after a week of pressure from rising bond yields. “Despite a growing list of headwinds (e.g., geopolitics, higher rates), global equities have climbed 12% YTD and are just below all-time highs,” wrote Citi strategist Beata Manthey. “Does this relative calm suggest equity fundamentals will prove resilient to ongoing macro shocks, or will stocks eventually need to correct to more accurately reflect the current risk backdrop? While uncertainty remains high, we still find ourselves in the “resilience” camp for now.” The benchmark 10-year Treasury note yield was unchanged at 5.277%, while the 30-year was relatively flat at 5.63%. Both yields surged to multiyear highs in recent weeks, as traders fretted that inflation would lead the Fed to keep rates higher for longer. Japan’s Nikkei 225 closed 2.40% higher at 69,946.86, while Australia’s benchmark S&P/ASX 200 ended flat at 8,686.40. Hong Kong’s Hang Seng index was marginally higher as of its last hour of trade on Monday. Markets in mainland China and South Korea are closed for holidays. Gold prices climbed on Monday as continued concerns of rising government debt and easing expectations of an immediate Federal Reserve rate hike lent support, although a firmer dollar limited gains. Spot gold rose 0.6% to $4,165.49 an ounce, while U.S. gold futures for December delivery added 0.8% to $4,194.60. “We continue to view rising government debt levels as a structural tailwind for the yellow metal,” said UBS analyst Giovanni Staunovo, noting the bullion is holding up relatively well despite headwinds from higher interest rates and a stronger U.S. dollar. Last month, total US debt topped $40 trillion for the first time, drawing fresh warnings that a fiscal crisis is brewing.
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