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Wall Street Braces For Mixed Open As Middle-East Tensions Offset Earnings Optimism: Analyst Points To Silver Lining In Rally Break
Earnings optimism may partly offset worries concerning rising bond yields and the volatile geopolitical situation in the Middle East, with the index futures trading mixed early Tuesday. Israel is considering its next course of action, adding to the uncertainty. Domestically, inflation concerns have pushed bond yields sharply higher.
UnitedHealth Group (NYSE:UNH) rose solidly after its earnings report, with other health benefit companies following suit. On the other hand, several tech heavyweights are sliding in premarket trading, hinting at extended weakness. Traders may pay attention to speeches by Federal Reserve officials, including one from Chairman Jerome Powell. Global cues are negative, with most major averages plunging hard amid the macro and geopolitical concerns.
Futures Performance On Tuesday ( as of 6:50 a.m. EDT)
Futures
Performance (+/-)
Nasdaq 100
-0.09%
S&P 500
-0.04%
Dow
+0.38%
R2K
-0.72%
In premarket trading on Tuesday, the SPDR S&P 500 ETF Trust (NYSE:SPY) was little changed at $504.43, and the Invesco QQQ ETF (NASDAQ:QQQ) edged down 0.10% to $430.63, according to Benzinga Pro data.
Cues From Previous Session:
The spike in bond yields, aided by a stronger-than-expected March retail sales report, and simmering tensions in the Middle East offset the optimism generated by earnings, and sent the major indices spiraling lower on Monday. The Dow declined for a six straight session despite the support lent by Goldman Sachs Group, Inc. (NYSE:GS) following the investment bank’s earnings release.
The plunge took the S&P 500 and the Nasdaq Composite to a nearly two-month low, ...