U.S stock futures turn negative on increasing treasury yield

The yield of the U.S 10-year treasury starts to increase again nearing the end of the week. At the current time, the yield climb to 1.6% as President Biden signed the $1.9 T stimulus bill into law. Analysts project that the yield could climb to as high as 2% in few months.

U.S stock futures turned lower after trading on the positive side in the Asian session. If the yield continues to increase then traders will expect further weakness in the stock market.

Asian & European Stock market

The Asian stock market is mostly higher today. Japan stock market up 506.19 points (+1.73%) to 29,717.83, China stock up 16.25 points (+0.47%) to 3,453.08 and Australia ASX 200 up 52.90 points (+0.79%) to 6,766.80 . The European stock market lower on yield fear. DAX Germany down 0.78%, UK FTSE down 0.32%, and Euro Stoxx600 down 0.57%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index printed a new record high yesterday but the index futures currently trading lower 22 points after climbed nearly 100 points earlier. It seems the index might come under pressure today as U.S 10-year Treasury yield starts to climb again. If the index started a bearish correction then 29,000 and 30,000 are the support levels to watch.

Hexo Corp (HEXO)

HEXO share prices seem to form a shoulder-head-shoulder pattern. The share prices currently moving near the right shoulder level and will attempt to break it. If the share prices could climb upward with strong bullish momentum and close above the left shoulder then we might see a bullish continuation.

On the other hand, a bearish bounce from the current level and close below daily SMA 50 could trigger weakness toward SMA 100 and 200.