Summary:
The Treasury market is experiencing a temporary calm after a period of turbulence. Yields on the 10-year note have been steadily increasing but have slowed down, currently standing at around 4.65%. The recent rise in oil prices has paused, which has helped stabilize bond prices. Stock futures show minimal movement on Wall Street, with European and Asian indexes under pressure. GameStop shares rose premarket after the company announced Ryan Cohen as its new CEO, while Peloton’s stock surged following a deal with Lululemon to sell co-branded apparel. The WSJ Dollar Index fell, ending the greenback’s seven-day streak of gains caused by rising bond yields. Nike is set to report earnings after the market closes, and Federal Reserve Chair Jerome Powell is scheduled to speak at a town hall later in the day.
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After a period of turmoil, the Treasury market has found some respite. Yields on the 10-year note have been steadily increasing, but they have slowed down in their ascent. Currently, the yields stand at approximately 4.65%, up around one basis point. This stabilization comes as a relief to investors who were initially rattled by the rapid rise in yields. The recent halt in oil market increases has also contributed to the reduction in losses for bond prices. With the front-month Brent futures contract surpassing $96 a barrel, the pause in oil prices has calmed the Treasury market, creating a temporary reprieve.
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The outlook for Wall Street appears stagnant, with stock futures indicating minimal movement. Indexes in Europe are experiencing pressure, and Asian markets have seen a decline. However, there have been a couple of notable exceptions. GameStop shares have surged premarket after the announcement of Ryan Cohen as the new CEO. Given that the videogame retailer has been without a CEO for months, this news has been met with enthusiasm by investors. Additionally, Peloton’s stock has seen significant growth after the company struck a deal with Lululemon to sell co-branded apparel. This collaboration has sparked investor interest, leading to a surge in Peloton’s stock.
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The WSJ Dollar Index has experienced a decline, putting an end to the greenback’s seven-day streak of gains. The recent surge in bond yields had fueled the rise of the dollar, but now, with the decline of the WSJ Dollar Index, this trend has been interrupted. Investors will be closely monitoring the impact of this index on the currency market. Furthermore, Nike is expected to report its earnings after the market closes. This disclosure will provide valuable insight into the performance of the company. Additionally, Federal Reserve Chair Jerome Powell is set to speak at a town hall later in the day, which will likely attract attention and potentially impact market sentiment and direction moving forward.