US stock futures are mixed in early trading, with S&P 500 contracts slightly softer while Dow futures edge up, as investors weigh falling government bond yields against a cooler housing backdrop and a key inflation update. The US 10 year yield is holding near 4.64%, which helps set borrowing costs for mortgages, credit cards and corporate debt. At the same time, June and July housing data show new home sales down 10.5% to 607,000 and prices sitting at about US$393,800, even as major home price indices still point to gains. The main question now is whether upcoming US inflation data and central bank commentary will keep pressure on rate sensitive areas like housing, real estate stocks and smaller growth companies, or give more support to large, cash generative sectors that tend to handle higher funding costs better.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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