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Stocks- U.S. Futures Slump as Treasury Yields Continue to Rise

Published 09/10/2018, 11:51
Updated 09/10/2018, 11:59
© Reuters.  U.S. Futures pointed to a lower opening bell on Wall Street.
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Investing.com – U.S. futures were lower on Tuesday, as rising bond yields continued to put pressure on equities.

The S&P 500 futures fell 12 points or 0.42% to 2,881.50 as of 6:50 AM ET (10:50 GMT) while Dow futures were down 113 points, or 0.43%, to 26,431.0. Meanwhile tech heavy Nasdaq 100 futures decreased 31 points, or 0.43%, to 7,360.25.

The yield on the benchmark United States 10-Year note reached a fresh seven-year high of 3.261%, while the United States 30-Year note climbed to a four-year peak of 3.44%.

Treasury yields started to climb last week as upbeat economic data increased expectations the Federal Reserve will raise rates in December and beyond.

Investors are likely to pay attention clues of inflation trends in comments from Fed speakers today.

Dallas Fed President Robert Kaplan is due to speak at 8:00 AM ET (12:00 GMT) while Chicago Fed President Charles Evans delivers remarks at 9:00 AM ET (13:00 GMT) and New York Fed President John Williams speaks in the evening.

Tesla (NASDAQ:TSLA) was among the top gainers in premarket trading, rising 1.74%, while General Electric (NYSE:GE) gained 0.59%.

Elsewhere Tata Motors Ltd (NS:TAMO) slumped 12.67% while Chinese e-commerce company Alibaba (NYSE:BABA) dipped 0.78% and Facebook (NASDAQ:FB) inched down 0.52%.

In Europe stocks were down. Germany’s DAX fell 67 points or 0.56% while in France the CAC 40 was down 20 points or 0.38% and in London the FTSE 100 decreased 26 points or 0.36%. Meanwhile the pan-European Euro Stoxx 50 lost 14 points or 0.42% while Spain’s IBEX 35 inched down 13 points or 0.14%.

In commodities, gold futures rallied 0.08% to $1,189.60 a troy ounce while crude oil futures increased 0.73% to $74.83 a barrel. The U.S. dollar index which measures the greenback against a basket of six major currencies, was up 0.29% to 95.72.

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