U.S. stock futures remained largely unchanged and bond yields rose on Thursday amid growing concerns that central banks could continue raising interest rates.
Both the S&P 500 and the Nasdaq Composite Index remained relatively unchanged after edging lower on Wednesday. S&P 500 e-minis rose 0.06% and the Nasdaq 100 gained 0.09% while Dow e-minis edged just 0.01% upwards. Microsoft Corp fell marginally, while Apple Inc and Amazon.com Inc both rose modestly.
Bonds were on the rise as the Bank of Canada implemented an unexpected interest rate hike. The 2-year Treasury yield marched on to its third consecutive daily rise, reaching 4.56%, amid rising concerns that the Federal Reserve may continue its interest rate hiking agenda.
“Our view remains that the Fed will pause in June, but leave the door open for a July hike, keeping it data dependent. Eventually we don’t think the Fed will hike in July,” Jefferies strategist Mohit Kumar said. Currently, traders expect that there is a 70% chance that the Fed will keep interest rates at the current 5%-5.25% range in June.