U.S. stock indexes are showing gains at the open on August 21 (S&P500: +0.28%) after a decline in the previous session, although they remain on track to finish the week lower, as elevated government bond yields and geopolitical tensions have dampened investors’ risk appetite.
Technology stocks are posting the weakest performance among sectors this week, suffering the most from the rise in long-term Treasury yields. Concerns about rising government debt, higher financing costs, and persistent inflation worries pushed the yield on 30-year Treasuries to a 19-year high on Tuesday. The strongest support for the S&P500 today is coming from the financial sector, led by shares of major banks including JPMorgan Chase and Goldman Sachs. Most megacaps and growth stocks also advanced, including Meta and Tesla.
On the economic front, the Purchasing Managers’ Index (PMI) rose to 53.2 points in August, according to preliminary S&P Global survey data. An increase to 53.9 points had been expected.