/US stocks dip as yields rise on Biden’s spending plan and pace of economic recovery

US stocks dip as yields rise on Biden’s spending plan and pace of economic recovery

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US stocks were slightly lower at the open Tuesday morning and bond yields rose as investors looked to Biden’s latest spending plan and continued to assess the fallout from the Archegos Capital Management implosion.

The 10-year US Treasury yield continued its march higher, rising 5 basis points to 1.77%, its highest since the start of the pandemic just over a year ago.

“We believe the recent rise in nominal government bond yields, led by real yields, is justified and reflects markets awakening to positive developments on the faster-than-expected activity restart combined with historically large fiscal stimulus – all helped by a ramp-up in vaccinations in the U.S.,” said a team of strategists from the BlackRock Investment Institute.

President Joe Biden is expected to deliver a speech on infrastructure spending on Wednesday. The plan could cost as much $4 trillion in new outgoings and include $3.5 trillion in tax hikes, according to the Washington Post.

Here’s where US indexes stood after the 9:30 a.m. ET open on Tuesday:

Bitcoin rose above $59,000 Tuesday morning as PayPal announced it will allow US consumers to use their cryptocurrency holdings to pay at millions of its online merchants. Bitcoin has added nearly $8,000 to its price in the last week.

West Texas Intermediate crude fell by 1.6%, to $60.55 per barrel. Brent crude, oil’s international benchmark, was down 1.35% to $64.11 per barrel.

Gold dropped 1.5%, to $1,687.40 per ounce.

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