G7-Global Taxes Likely To Weigh Tech Stocks
USA500 futures gained some strength in yesterday’s trading, as markets are bullish on stocks on the JOLTS report and ahead of the release of key inflation data later today. JOLTS Job Openings hit a series high of 9.3 million on the last business day of April, the US Bureau of Labor Statistics reports. Recruitment was little changed at 6.1 million. The hire rate was steady at 4.2%. Hiring was led by leisure at 1,424k. Layoffs declined -81k to 1,444k from -198k to 1,525k (was 1,480k) with the rate at 1.0% versus 1.1% (was 1.0%). Quitters increased 384k to 3,952k versus the 185k jump to 3,568k (was 3,508k). The quit rate rose to 2.7% from 2.5% (was 2.4%). The report reflects the anecdotes of huge demand for workers as the economy more fully reopens.
Treasury Yields moved lower initially which means that bond traders remain confident ahead of the inflation report. The 10-year Treasury yield is at 1.53%, down from 1.57%, while the 30-year is at 2.21%, down from 2.25%.
Lower yields usually mean bullishness for tech related stocks, which indeed moved higher with the USA100 forming the right shoulder in yesterday’s trading, although the recent G7 tax deal targeted the tech giants. This may weigh on their share prices in the future.
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