The Nasdaq and S&P 500 futures have edged lower following Monday's mixed close. The market mood has returned to being tentative as traders stay focused on the developments around the ongoing banking crisis while turning their attention to some key economic data points scheduled for the week.
The resiliency of the market could be tested further as investors keep a watchful eye on bond yields and await Attorney General William Barr's testimony before Congress regarding special counsel Robert Mueller's report.
According to market analysts, concerns about bond yields are weighing heavily on investor sentiment. Rising bond yields often indicate that inflation is expected to increase, which can lead to higher borrowing costs for companies and consumers alike. This can ultimately impact stock prices negatively.
At the same time, many investors are closely watching Attorney General Barr's testimony before Congress today. He will face questioning from lawmakers over his handling of special counsel Robert Mueller’s investigation into Russian interference in the 2016 presidential election. If his responses do not satisfy lawmakers or if he reveals any new information, it could create further volatility in an already uncertain market.
Despite these challenges, some traders remain optimistic that positive economic data may help offset any negative impacts on stocks caused by these events. This week features several important economic reports including consumer price index (CPI) figures and retail sales numbers which could potentially lift stocks if they come in above expectations.
Investors will be keeping a close eye on how markets react over the coming days amid this uncertain landscape.