HomeBusinessS&P 500, Nasdaq falls, yields rise after aggressive Fedspeak

S&P 500, Nasdaq falls, yields rise after aggressive Fedspeak

US futures open in the green on Friday as interest rates climb above 4%.

Futures linked to the S&P 500 (^GSPC) were up about 0.3%, while futures on the Dow Jones Industrial Average (^DJI) were up 0.2%. Contracts on the tech-heavy Nasdaq Composite (^IXIC) were up about 0.2%.

The yield on the benchmark 10-year US Treasury Note (^TNX) was above 4% on Friday morning. Crude oil was trading weaker, with the US benchmark WTI (CL=F) falling at $77.61 a barrel.

On the economic data side, Wall Street awaits Friday morning service data, which could provide more details on inflation. Economists polled by Bloomberg expect the ISM Services PMI to fall from 55.2 in January to 54.5.

Shares rallied on Thursday, with the S&P 500 trading lower for most of the session before recovering after comments from Atlanta Federal Reserve president Raphael Bostic.

Bostic said he is still open to raising rates by another quarter of a percentage point at the central bank meeting in March. “I was guided by the data,” Bostic told reporters at a news conference. “If the data continues to come in suggesting the economy is stronger than I expected, I will adjust my policy trajectory.”

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Raphael Bostic, president of the Federal Reserve Bank of Atlanta, speaks from Atlanta at a webinar sponsored by the 12 regional Fed banks to address the lack of racial disparity in economics on Tuesday, April 13, 2021. (AP Photo)

Bostic, who is not a voter on monetary policy this year, wrote an essay on Wednesday calling for the Fed to raise its policy rate by 50 basis points to a range of 5%-5.25% and then hold it there well into the fall. 2024.

Fed officials raised the benchmark rate by a quarter of a percentage point in February, pushing the target into a range of 4.5%-4.75%. Policymakers will release new forecasts after the March 21-22 central bank meeting.

In some stock moves, C3.ai (AI) rose 19% ahead of Friday’s market open after the company posted fiscal third quarter revenue of $66.7 million, beating analyst expectations of $64.2 million.

Costco (COST) shares fell 2% in premarket trading after the bulk retailer posted mixed second-quarter results. Total revenue for the last quarter was $55.27 billion, slightly below analyst expectations of $55.58 billion. During the earnings call, the company delivered hopeful news on the inflation front.

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In the cryptocurrency market, both Bitcoin (BTC) and Ether (ETH) fell as customers withdraw funds from crypto bank Silvergate (SI), whose shares plummeted more than 57% during Thursday’s trading session.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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