U.S. stock futures rose Monday, while the gap between short-dated and long-term bond yields narrowed, a sign that investors are turning away from bets that benefit from a sustained rise in inflation.
Futures tied to the Dow Jones Industrial Average advanced 0.5%, suggesting a rebound after its tumultuous drop last week. By the Friday close, the blue-chips index had suffered its largest decline since the week ended Oct. 30.
Contracts linked to the S&P 500 climbed 0.3% Monday, while Nasdaq-100 futures rose 0.3%, pointing to gains in large technology stocks at the opening bell.
Stocks appear poised to recover some ground at the start to the week. Investors’ risk appetite took a hit last week after Federal Reserve officials signaled that they may raise interest rates sooner than they had previously anticipated. The comments prompted a pullback in prices on stocks, lumber and gold last week, before they ground higher on Monday.
“There are no very strong convictions in the market for the time being,” said Nadège Dufossé, head of asset allocation strategy at asset manager Candriam. “The market is really focused on the evolution of rates and central bank comments.”