US market futures are slightly softer this morning, with E-mini S&P 500 contracts down 0.03% while Nasdaq-100 futures are weaker by around 0.6%. The key tug of war is between a firm US interest rate backdrop and pockets of economic resilience. Durable goods orders in June rose 0.3%, short of forecasts, yet a 0.9% lift in core business equipment orders points to companies still spending on long term projects. At the same time the 10 year US Treasury yield sits near 4.64% ahead of this week’s Federal Reserve decision. This keeps borrowing costs front and centre for rate sensitive areas such as growth stocks and real estate investment trusts, as investors weigh whether steady business demand can offset higher financing pressures for these sectors.
With higher yields pressuring growth and rate sensitive stocks, focus on 83 resilient stocks with low risk scores before volatility picks up.
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Earnings from mega cap tech and consumer brands will share the spotlight with the Federal Reserve decision and rate backdrop.
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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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