Futures rose after a third straight day of stock declines, but concern grew that Treasury yields could rise further and that inflation could remain elevated. Major indices closed lower, with the Russell 2000 down 1.01%, the Nasdaq down 0.82%, the S&P 500 down 0.67%, and the Dow down 0.65%. Treasury yields increased across the curve, driven by inflation worries, government spending, the war with Iran, and expectations that the next rate move may be higher. The 30-year bond ended at 5.18% and the 10-year note at 4.67%. Oil fell as U.S. inventories declined but remained higher for the year; Brent closed at $111.10 and WTI at $104.10. Natural gas rose to $3.11. Gold and silver declined as a stronger U.S. dollar and higher yields reduced demand for non-yielding bullion.
"Futures are trading higher on the heels of the third straight day of stock declines, and there is growing apprehension that yields will go even higher and that inflation may as well. All of the major indices finished Tuesday lower, and with Q1 earnings all but over and the incoming economic data likely grim, we could be in for a cruel summer."
"Yields were higher across the yield curve on Tuesday for the same reasons we have pointed to for weeks now. Inflation, which remains the number one anxiety point for the bond market, followed by proliferating government spending, the ongoing war with Iran, and the mere fact that the next move on interest rates may very well be an increase. When the final bell rang, the 30-year-long bond closed the session at 5.18%, the highest since 2007, and the benchmark 10-year note closed at 4.67%."
"On what was a rough day for investors overall, oil prices traded lower, and the good news is that while U.S. inventories have fallen, and fallen fast, they are still up for this year. When it was all said and done, Brent Crude closed Tuesday at $111.10, down 0.83%, and West Texas Intermediate was last seen at $104.10, down 0.24%. Natural gas, which may be the best energy bet in the future, continued its hot streak, closing up 2.98% at $3.11."
"Precious metals marched in lockstep with bonds, stocks, and energy; both Gold and Silver finished the day lower. A stronger U.S. dollar and rising Treasury yields weighed on the sector, making non-yielding bullion less attractive to investors. The metals faced further pressure from easing g"
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