US futures in positive territory, at the highs for the day
- S&P 500 futures +0.4%
- Nasdaq futures +0.4%
- Dow futures +0.2%
- Russell 2000 futures +1.1%
After a bit of a hiccup earlier in the day, owing in some part to the selloff in Hong Kong stocks, the market is running with the reassurance from Fed chair Powell yesterday.
US futures are at the highs for the day now and looking to keep in a better spot ahead of the open later before another slate of Fedspeak due on the agenda today.
As much as some quarters of the market have been spooked by inflation prospects and what not, Bloomberg's Joe Weisenthal presented a very good argument that the broader market isn't exactly too keen on pricing in a rate hike by the Fed - that is if you go by the 3-month-to-3-year spread on US yields, which is sitting at roughly 18 bps.
That translates to the market seeing less than a 25 bps rate hike in the next three years by the Fed, so is there really a need to overreact just yet? Just some food for thought.
