Futures dip after report Trump mulls economic emergency; Treasury yields stand tall

Published On Jan 8, 2025, 7:41 AM

Futures for U.S. stock indices are down as investors react to a report about President-elect Donald Trump potentially declaring a national economic emergency. This may allow him to implement a new tariff program which raises concerns about inflation and global trade tensions. Additionally, rising Treasury yields are adding pressure on riskier stocks, with the benchmark 10-year Treasury yield reaching its highest in eight months. The markets are also awaiting employment data and Fed meeting minutes for economic indicators.

Stock Forecasts

SPY

Negative

The potential for Trump to declare a national economic emergency raises concerns about trade wars and inflation, likely leading to market volatility. Rising Treasury yields imply a shift toward safer assets, making equities less attractive. Immediate negative sentiment may continue.

QTUM

Negative

Stocks related to quantum computing faced severe declines after statements by Nvidia's CEO indicated the technology's practical applications are still far off, impacting investor sentiment in the sector.

TPR

Positive

Tapestry saw a slight increase after an upgrade by Barclays, indicating potential for positive movement following favorable analyst sentiments amidst a generally negative market environment.

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