Dow Jones futures will open on Sunday evening, along with S&P 500 futures and Nasdaq futures. The stock market rally came under pressure last week, as Treasury yields soared to their highest level since the coronavirus pandemic began.
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The new year started off with a solid rally on Monday, led by Tesla (TSLA), Advanced Micro Devices (AMD), Nvidia (NVDA) and Apple (AAPL). But the rest of the week was an expectation breaker, with the major indexes selling off and leaders such as Tesla stock reversing hard.
Surging Treasury yields was the driving force, as a surprisingly hawkish Fed jobs report on Friday spurred selling in bonds. That slammed growth stock names and buoyed financials. Rising crude oil prices lifted energy stocks.
But the overall trend was negative. The stock market rally is an uptrend under pressure. Investors should recalibrate their expectations and respond accordingly.
Tesla, AMD and Nvidia stock are in IBD Leaderboard. The video embedded in this article discussed the major indexes and sector moves in detail, while also analyzing Tesla stock, Hilton Worldwide (HLT) and Cheniere Energy (LNG).
Late Friday, Tesla CEO Elon Musk said his company would raise the price of Full Self-Driving in the U.S. by $2,000, to $12,000, on Jan. 17. He also said FSD Beta 10.9 will be released soon.
Dow Jones Futures Today
Dow Jones futures open at 6 p.m. ET on Sunday, along with S&P 500 futures and Nasdaq 100 futures.
Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.
Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live
Coronavirus News
Coronavirus cases worldwide reached 303.79 million. Covid-19 deaths topped 5.49 million.
Coronavirus cases in the U.S. have hit 60.46 million, with deaths above 858,000.
New coronavirus cases are well above 2 million a day worldwide, with the U.S. easily breaking daily records. Hospitalizations have risen, but ICU beds generally remain available, as omicron has been milder than previous Covid variants.
Stock Market Rally
The stock market rally started the week off with solid gains but then quickly deteriorated.
The Dow Jones Industrial Average dipped 0.3% in last week’s stock market trading, as blue-chip financials, energy firms and Caterpillar (CAT) offset losses in other sectors. The S&P 500 index retreated 1.9%. The Nasdaq composite sold off 4.5%, its worst weekly loss since last February. The small-cap Russell 2000 gave up 2.9%.
The 10-year Treasury yield skyrocketed 26 basis points to 1.77%, hitting its highest levels since January 2020. U.S. crude oil futures rose about 5% for the week to $78.90 a barrel after topping $80 late in the week intraday.
Among the best ETFs, the Innovator IBD 50 ETF (FFTY) plunged 8.6% last week, while the Innovator IBD Breakout…
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