US Stock Market Update: Live Coverage and Analysis of Dow, S&P 500, and Nasdaq Performance
US Stock Market Sees Mildly Positive Start Amid Cautious Sentiment
The US stock futures indicated a mildly positive start on Wednesday, 20 May, after a three-session losing streak. This comes as Wall Street ended in the red over the past three trading sessions, weighed down by rising bond yields and a lack of progress in negotiations between the US and Iran. The ongoing uncertainty has kept market sentiment cautious.
Despite the positive start, the market remains under pressure due to higher bond yields. The 30-year Treasury yield climbed one basis point on Wednesday to 5.19%, marking its highest level in nearly 19 years. In contrast, the 10-year Treasury yield was little changed at 4.67% after touching a 16-month high of 4.7% in the previous session.
| Metric | Previous Session | Current Session |
|---|---|---|
| 30-year Treasury Yield | 5.18% | 5.19% (1 basis point increase) |
| 10-year Treasury Yield | 4.7% | 4.67% |
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Higher bond yields have continued to cap Wall Street's rally as speculation intensifies that the US Federal Reserve may opt for another rate hike before year-end rather than a rate cut. Technology stocks, which have so far supported Wall Street's rally, are increasingly being weighed down by rising bond yields. This is due to the fact that valuations in the sector remain heavily dependent on expectations of strong future earnings growth.
Investor Takeaway
Market sentiment remains cautious due to rising bond yields and geopolitical tensions.
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