Stock futures were flat after the S&P 500 ended a two-week winning streak

After the S&P 500 reported its first losing week in three, stock futures stayed steady in overnight trading on Sunday.

Dow Jones Industrial Average futures rose 20 points. S&P 500 futures were up 0.2% and Nasdaq 100 futures were up 0.2%.

The S&P 500 and the Nasdaq Composite Index broke a two-week winning streak with a loss of 0.7% and 1.6%, respectively, last week. At the same time, supported by Caterpillar and JPMorgan, the Dow rose 0.1%.

Last week, the 10-year Treasury yield jumped 14 basis points to 1.34%, near its highest level since February 2020. The benchmark rate has gone up 25 basis points so far this month.

Matt Maley, chief market strategist at Miller Tabak mentioned that investors should keep a close eye on this yield move. 

Meanwhile, many on Wall Street assume that the bond yield jump represents a signal of rising trust in the economic recovery. Stocks should be able to absorb higher rates amid strong earnings.

The market entered the last week of February. The Dow and S&P 500 rose more than 5% this month, and the Nasdaq is up 6.2%. The small-stock Russell 2000 has outperformed the broader market, rising 9.3% this month.

Damon Harrison
Market Analyst, IPG Group