U.S. stocks opened flat on Wednesday as investors position themselves for more volatility in 2018 amid rising U.S. Treasury yields, higher inflation expectations in light of recent improving wage growth, and lingering questions about whether the U.S. Federal Reserve will follow through with 4 interest rate hikes this year.
The U.S. 10 year Treasury yield is currently trading at 2.78 percent after rising to over 2.80 percent.
Although 2017 saw U.S. indexes advancing over 25 percent, they fell under heavy selling pressure on Monday with the S&P 500 falling the most since 2011 and the Dow tumbling over 1,100 points in the largest point drop ever.
On Tuesday U.S. equity indexes recovered with the Dow gaining 2.33 percent, the S&P 500 advancing 1.74 percent, and the Nasdaq up 2.13 percent.
Corporate earnings season remains underway this week with Tesla and 21st Century Fox reporting earnings today.
Overall, economic data is light this week but later today U.S consumer credit for December will be reported.
N.Y. Federal Reserve President William Dudley and Chicago Federal Reserve President Charles Evans will also give speeches today.
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