European recovery plays surge while Nasdaq-100 futures slump after U.S. Senate passes $1.9 trillion stimulus plan
European stocks rose on Monday while U.S. technology stock futures slumped, with bond yields near one-year highs as the world’s largest economy was on the verge of adding $1.9 trillion in stimulus.
The U.S. Senate over the weekend passed its version of the $1.9 trillion stimulus package, sending it back to the U.S. House for approval before President Joe Biden can sign it into law. The surge in bond yields — with the 10-year Treasury TMUBMUSD10Y,
The Stoxx Europe 600 SXXP,
Prepared-foodkit maker HelloFresh HFG,
Futures on the tech-heavy Nasdaq-100 NQ00,
Florent Pochon, a strategist at French bank Natixis, said there are plenty of reasons for markets to be jittery, but he expects any tantrum for stocks to be limited as long as the Federal Reserve remains dovish.
“In terms of valuation, the U.S. 10-year does appear to be approaching fair value, bearing in mind all the uncertainty determining quite what it is,” he said. “Massive as the U.S. fiscal stimulus plan might be, it is not expected to generate elevated structural inflation, but rather deepen the country’s trade deficit.”
Shares in educational publisher Pearson PSON,
