US Stocks Rise on Services Expansion, Earnings Hopes
US stock futures are pointing higher this morning, with E-mini S&P 500 contracts up about 0.4% and Nasdaq-100 futures gaining roughly 0.3%. The US 10-year government bond yield hovers near a 20-month high around 4.74%, which means borrowing costs across mortgages, credit cards, and corporate debt are still elevated.
The latest US PMI readings show services activity comfortably expanding while factory output lags, hinting that everyday spending on things like travel and healthcare is holding up better than goods production.
Investors are shifting focus toward 75 resilient stocks with low risk scores as higher yields pressure rate-sensitive stocks. Top movers include Robinhood Markets, which jumped 13.70% after investors focused on its crypto trading exposure following Clarity Act headlines, and Moderna, which gained 8.86% as the market reacted to positive Phase 3 melanoma vaccine data and multiple analyst upgrades.
Southern Copper rose 8.69% following fresh attention on its role in copper supply for AI and infrastructure themes. However, with higher yields pressuring rate-sensitive stocks, it's unclear whether Southern Copper is still a smart investment or just hype.