The S&P 500 slipped on Friday after hitting an all-time high in the prior session, as a spike in US bond yields revived inflation worries and dented appetite for high-growth stocks.

Wall Street's main indexes are set for their best week in six after one of the largest US fiscal stimulus bills was signed into law and data reinforced views that the economy was on the path to a recovery.

A consistent rise in US bond yields has raised fears of a sudden tapering of monetary stimulus, pressuring the main US stock indexes in recent weeks.

The yield on the benchmark 10-year notes rose back above 1.60% on Friday to approach the one-year highs touched last week.

Speedy vaccine distribution and more fiscal aid have also added to concerns of higher inflation despite assurances from the Federal Reserve to maintain an accommodative policy. All eyes will now be on the central bank's policy meeting next week for further cues on inflation.

US consumer sentiment improved in early March to its strongest in a year, a survey by the University of Michigan showed on Friday.

Plan A : Long if market supported firm above 3934. Targets are 3949, 3966 and 3981.

Plan B : Short if market failed to support above 3934. Targets are 3908, 3885 and 3861.

U.S. stock futures were mixed early Monday morning and pointed to a cautious open later in the day. That followed last week’s rally that led the Dow and S&P 500 to record highs.

The tech-heavy Nasdaq tumbled 1.3% after rebounding more than 6% over the past three sessions.

The Nasdaq has been particularly hit by the sell-off in recent weeks and confirmed a correction at the start of the week as investors swapped richly valued technology stocks with those of energy, mining and industrials companies that are poised to benefit more from an economic rebound.

Investors will be gearing up for Tuesday and Wednesday’s Federal Open Market Committee meeting where the Federal Reserve will deliver its decision on interest rates. The bond market in the coming week will likely take its cues from the Federal Reserve.

Plan A : Long if market supported firm above 12915. Targets are 12945, 12980 and 13010.

Plan B : Short if market failed to support above 12915. Targets are 12881, 12830 and 12799.
 

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