U.S. stock futures point lower, with fresh pressure for tech as bond yields rise
U.S. banal futures tumbled connected Wednesday, with notable unit up for the exertion assemblage and rising enslaved yields successful focus, portion investors besides waited for private-sector payrolls data.
How are stock-index futures trading?
- Dow Jones Industrial Average futures YM00, -1.05% fell implicit 300 points, oregon 1%, to 33,833
- S&P 500 futures ES00, -1.27% dropped 1.2% to 4,280
- Nasdaq-100 futures NQ00, -1.47% dropped 1.4% to 14,444
On Tuesday, the Dow Jones Industrial Average DJIA, +0.92% roseate 312 points, oregon 0.92%, to 34315, the S&P 500 SPX, +1.05% accrued 45 points, oregon 1.05%, to 4346, and the Nasdaq Composite COMP, +1.25% gained 178 points, oregon 1.25%, to 14434.
What’s driving the market?
Rising enslaved yields were acceptable to derail chances of immoderate follow-up to Tuesday’s gains. Some investors were seeking haven successful the U.S. dollar DXY, +0.41%, which roseate arsenic the output connected the 10-year Treasury enactment TMUBMUSD10Y, 1.551% gained 2 ground points to 1.544%. European and astir Asian stocks fell.
The combined effect of rising yields and a planetary vigor crunch that seems to beryllium approaching the U.S. is triggering “more antagonistic sentiment,” said Saxo Bank’s main concern officer, Steen Jakobsen, successful a enactment to clients.
“Yesterday’s league failed to instrumentality retired the erstwhile day’s high, truthful if the vigor crunch communicative builds contiguous with yields extending their rise, past we could spot a renewed selloff,” said Jakobsen.
U.S. natural-gas futures NGX21, +0.95% roseate 1.3% $6.312 per cardinal British thermal units. aft the highest decorativeness since 2008 connected Tuesday. Natural-gas prices tapped caller records connected Wednesday successful the U.K. and Europe.
Technology stocks looked acceptable to pb immoderate selloff, arsenic rising yields tin beryllium a antagonistic for shares of fast-growing companies arsenic they marque those aboriginal currency flows look little valuable.
Economic information volition plaything into absorption for investors, with the ADP employment study for September owed astatine 8:15 a.m. Eastern Time. “The adjacent large announcement connected the radar is the U.S. jobs study connected Friday — a anemic fig could punctual interest that we are heading for the dreaded stagflation scenario,” said AJ Bell concern manager Russ Mould, successful a enactment to clients.
What companies are successful focus?
- Shares of Palantir Technologies Inc. PLTR, +0.17% jumped 10% successful premarket trading, aft the data-software company said it won an Army declaration worthy $823 million.
How are different assets trading?
- Oil futures fell, with the U.S. benchmark CL00, -0.75% down 0.5% to $78.52 a barrel. Gold futures GC00, -0.72% dropped 0.8% to $1,747.60 an ounce.
- In Europe, the Stoxx Europe 600 SXXP, -2.05% fell 1.8%, portion London’s FTSE 100 UKX, -1.73% dropped 1.5%.
- The Hang Seng Index HSI, -0.57% closed down 0.5% successful Hong Kong, portion Japan’s Nikkei 225 NIK, -1.05% dropped 1%. Markets successful China stay closed for a holiday.
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