S&P 500 to open just shy of 11-week highs as investors parse prospects for rate rises by the Federal Reserve in the wake of a strong U.S. jobs report.
U.S. stock futures on Monday fell back from close to 11-week highs as hopes for easier China COVID restrictions pushed up bond yields.
What’s driving markets U.S. equity futures were starting the week on a soft note as better news of out of China helped nudge bond yields higher. “The effect on the economy of the zero-COVID rules has been underlined by the latest Caixin PMI data showing activity in the services sector shrunk to six month lows. Investors are largely looking beyond this bleak snapshot, buoyed by the weekend’s relaxation of rules and clinging onto hopes that there will be a further softening of strict pandemic policies,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
The increase in benchmark borrowing costs was helping contain demand for stocks on Monday, with some analysts also noting that techinical factors may hobble a rally that has seen the S&P 500 rise 13.8% from its 2022 low hit in mid October.
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