"Futures are trading mostly higher after another risk-off day on Wall Street on Wednesday. Despite more solid news on the inflation front, as the producer price index report came in below estimates, the swirling geopolitical issues around the world and at home are starting to weigh on Wall Street's bullishness. The potential for the U.S. to take action in Iran, which President Trump downplayed later in the day, which threatened military action in retaliation, plus domestic issues related to the ICE efforts to remove illegal immigrants, many of whom are dangerous criminals, are starting to try investors' patience."
"All of the major indices finished the day lower, except the Russell 2000, which is leading the pack two weeks into the new trading year. The Nasdaq was the biggest loser on Wednesday, dropping 1% to close at 23,471. The Dow Jones Industrials closed down 0.13% at 49,128, while the S&P 500 closed lower by 0.53% at 6,926. The big winner once again was the Russell 2000, which closed up 0.55% at 2,647, as small-cap U.S. stocks finally started to draw some attention and rotation dollars."
"Yields were down across most of the yield curve as buyers stepped into all of the maturities except for short-duration T-bills. Demand for safe-haven assets amid mixed economic signals and stock market volatility, combined with the potential for a stronger-than-expected economy, helped spur demand at current yield levels. With retail sales stronger than expected and inflation cooling, more rate cuts are coming, but they may be pushed to the summer. The 30-year-long bond closed at 4.79%, while the benchmark 10-year note was last seen at 4.14%."
Futures were mostly higher despite a risk-off session as the producer price index came in below estimates while geopolitical and domestic tensions weighed on sentiment. Potential U.S. action in Iran was downplayed by President Trump, and ICE immigration enforcement raised domestic concerns. All major indices closed lower except the Russell 2000, with the Nasdaq down 1% to 23,471, the Dow down 0.13% to 49,128, and the S&P 500 down 0.53% to 6,926; the Russell rose 0.55% to 2,647. Yields fell across the curve except short T-bills, with the 30-year at 4.79% and the 10-year at 4.14%, as retail sales surprised higher and inflation cooled, pushing anticipated rate cuts toward summer. Oil prices reversed after reduced Iran military risk, with Brent at $64.55, down 1.41%.
Read at 24/7 Wall St.
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