US Futures & Treasuries Decline Before Jobless Claims – Europe Market Wrap
US stock futures and Treasuries fell as trading resumed following the Christmas holiday, with investors expecting Initial Jobless Claims data and a government bond auction later on today.
Contracts for the S&P 500 declined 0.4% by 5:52 AM in New York, while futures for the tech-heavy Nasdaq 100 fell 0.5%. In premarket trading, cryptocurrency-related stocks such as MicroStrategy and Riot fell in tandem with the price of Bitcoin. Most major European markets are still closed for vacations.
Equity bulls are betting on the “Santa Claus rally,” in which equities increase during the last five trading sessions of the year and the first two of the new one. Driven by optimism about the health of the US economy and advances in artificial intelligence, the S&P 500 is poised for its biggest climb relative to the rest of the globe since 1997. With Trump’s inauguration slated for Jan. 20, investors are awaiting insights on his proposed policies, including tax cuts and tariffs.
Treasury 10-Yr rates rose two basis points to 4.61% before the US auctions $44 billion in 7-Yr notes on Thursday. The dollar remained relatively stable against its Group of 10 peers.
