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Stock Market Today: Dow, S&P Live Updates for March 22, 2021

3 min read
Turkey's Finance Minister Resigns Amid Deepening Economic Woes

Photographer: Burak Kara/Getty Images

Stocks edged lower with U.S. equity futures on Monday, though technology shares outperformed as Treasury yields retreated from recent highs. Turkey’s lira tumbled after the country’s central bank governor was ousted.

The Stoxx 600 Index dropped 0.2%, with tech shares and automakers among the few sectors in the green. Futures on the S&P 500 Index also dipped, while those on the tech-heavy Nasdaq gauge advanced. In Asia, Chinese stocks rallied and Japanese equities slid. The dollar ticked up and oil resumed its decline following the worst week since October.

The Turkish lira slumped as much as 15% and stocks slid after Recep Tayyip Erdogan removed removed the country’s third central bank chief in less than two years. The nation said it will continue to stick to free markets and a liberal foreign-exchange regime.

The 10-year U.S. Treasury yield fell back to 1.68% from the highest levels in about 14 months following soothing comments from Federal Reserve officials. A slate of auctions this week could be a catalyst for a renewed rise in rates.

The peak-to-trough decline in long-term U.S. bond returns is the biggest on record

Bonds continue to dominate markets, with last week’s Treasury sell-off a stark reminder of investor concerns that a stronger economic recovery could lead to inflation. The jump in yields is also fueling stock volatility, with investors rotating out of growth and into value shares. Despite reassuring comments from policymakers, some suspect price pressures could force the Federal Reserve to tighten monetary policy sooner than current guidance suggests.

“Clearly, the market is skeptical that the Fed will be able to keep interest rates at current levels for the next three years,” Diana Mousina, senior economist in the multi-asset group at AMP Capital Investors Ltd., said in a note. “We think that nominal bond yields can still shoot higher in the short-term towards 2% and above on inflation concerns. Markets are likely to worry that this move is permanent, rather than temporary.”

Fed Chairman Jerome Powell reiterated in a Wall Street Journal editorial that the central bank will provide aid to the economy “for as long as it takes.” Richmond Fed President Thomas Barkin said in a Bloomberg TV interview Sunday that there is no sign yet of unwanted inflation pressures. | Newsphere by AF themes.