Dow futures rose more than 200 points as Treasury yields fell

U.S. stock futures

U.S. stock futures rose sharply in overnight trading on Sunday as Treasury yields continued to fall from last week’s highs.

Dow futures were up 240 points. S&P 500 futures rose 0.88% and Nasdaq 100 Index futures rose 1.18%.

The 10-year Treasury yield slightly fell to 1.4%. Prices move inversely to yields.

The Dow Jones Industrial Average and S&P 500 lost and 1.7% and 2.5%, respectively, between Monday and Friday.

On Thursday, the Nasdaq Composite fell more than 4% for the week, and had its biggest one-day decline since October.

“Bond market volatility has risen to its highest level since April. Before there is some stability and a new peak level of yields is found, this will be the main focus for investors,” Jim Paulsen, chief investment strategist at The Leuthold Group, told CNBC. 

Major averages rose in February, buoyed by a strong earnings season, positive news about vaccine launches, and hopes for another round of stimulus.

In February, the Dow rose 3.15%, marking its third monthly gain in four months. For the fourth month in a row, the S&P 500 gained 2.61%, while the Nasdaq Composite gained nearly 1%.

Damon Harrison
Market Analyst, IPG Group