Economic news

Nasdaq futures slide 2% as higher yields pressure growth stocks

2022.05.09 14:06

Nasdaq futures slide 2% as higher yields pressure growth stocks
A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., May 5, 2022. REUTERS/Andrew Kelly

(Reuters) – U.S. stock index futures slid on Monday as rising U.S. Treasury yields weighed on growth stocks amid prospects of aggressive policy tightening by the Federal Reserve, with fears of a sharp economic slowdown in China also dampening the sentiment.

Futures tracking the Nasdaq 100 index tumbled about 2%. Megacap stocks Microsoft Corp (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Apple Inc (NASDAQ:AAPL), Google-owner Alphabet (NASDAQ:GOOGL) Inc, Meta Platforms and Tesla (NASDAQ:TSLA) Inc fell between 1.9% and 3.2% in premarket trading.

Yield on the benchmark 10-year Treasury note rose to 3.19%, its highest level since November 2018, as data last week underscored strength in the U.S. economy and investors bet on bigger rate hikes by the Fed to curb surging inflation. [US/]

Most traders expect the U.S. central bank to raise interest rates by 75 basis points at its June meeting, after increasing it by 50 basis points this month. [IRPR]

Technology-focused growth stocks have faced the brunt of the selloff this year, as their returns and valuations are discounted more deeply when yields rise.

The tech-heavy Nasdaq registered its lowest close since 2020 on Friday, notching a fifth straight weekly loss, its longest losing streak since the fourth quarter of 2012.

The S&P 500 growth index has dropped nearly 21% year-to-date, compared to a 13.5% fall in the benchmark S&P 500 index.

Globally, stocks tumbled and oil prices fell on Monday, sparked by weak China data and a tightened COVID-19 lockdown in Shanghai that deepened investors’ fears that the global economy is headed for a slowdown. [GLOB/MKTS]

At 06:19 a.m. ET, Dow e-minis were down 446 points, or 1.36%, S&P 500 e-minis were down 67.75 points, or 1.64%, and Nasdaq 100 e-minis were down 251.75 points, or 1.98%.

Meanwhile, focus will be on U.S. inflation data and a slew of Fed speakers appearances this week as investors seek clues on the path of interest rates.

Morgan Stanley (NYSE:MS) fell 2.2% to lead declines among the big banks.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 82,399.08 0.37%
ethereum
Ethereum (ETH) $ 1,895.15 1.76%
tether
Tether (USDT) $ 1.00 0.01%
xrp
XRP (XRP) $ 2.31 3.80%
bnb
BNB (BNB) $ 578.74 0.47%
solana
Solana (SOL) $ 125.34 0.78%
usd-coin
USDC (USDC) $ 1.00 0.01%
cardano
Cardano (ADA) $ 0.715476 0.46%
dogecoin
Dogecoin (DOGE) $ 0.169352 0.41%
tron
TRON (TRX) $ 0.222662 0.30%
staked-ether
Lido Staked Ether (STETH) $ 1,892.41 1.99%
pi-network
Pi Network (PI) $ 1.56 8.80%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 82,282.05 0.21%
chainlink
Chainlink (LINK) $ 13.76 5.30%
leo-token
LEO Token (LEO) $ 9.73 0.48%
stellar
Stellar (XLM) $ 0.276566 4.64%
usds
USDS (USDS) $ 1.00 0.04%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,267.88 2.04%
hedera-hashgraph
Hedera (HBAR) $ 0.190485 1.77%
avalanche-2
Avalanche (AVAX) $ 18.91 0.84%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 2.87%
sui
Sui (SUI) $ 2.20 1.14%
the-open-network
Toncoin (TON) $ 2.80 3.36%
litecoin
Litecoin (LTC) $ 89.79 1.38%
bitcoin-cash
Bitcoin Cash (BCH) $ 329.15 1.02%
polkadot
Polkadot (DOT) $ 4.06 3.31%
mantra-dao
MANTRA (OM) $ 6.26 2.62%
ethena-usde
Ethena USDe (USDE) $ 0.999696 0.04%
weth
WETH (WETH) $ 1,895.94 2.01%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.23%
bitget-token
Bitget Token (BGB) $ 4.27 3.04%
hyperliquid
Hyperliquid (HYPE) $ 13.67 11.14%
whitebit
WhiteBIT Coin (WBT) $ 28.19 1.14%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,013.78 1.88%
monero
Monero (XMR) $ 208.77 0.09%
uniswap
Uniswap (UNI) $ 5.90 1.64%
susds
sUSDS (SUSDS) $ 1.04 0.11%
near
NEAR Protocol (NEAR) $ 2.66 5.17%
dai
Dai (DAI) $ 1.00 0.01%
aptos
Aptos (APT) $ 5.17 1.72%
pepe
Pepe (PEPE) $ 0.000007 0.63%
ethereum-classic
Ethereum Classic (ETC) $ 18.44 4.83%
ondo-finance
Ondo (ONDO) $ 0.84973 1.02%
internet-computer
Internet Computer (ICP) $ 5.57 2.49%
okb
OKB (OKB) $ 41.91 0.72%
gatechain-token
Gate (GT) $ 20.53 2.77%
aave
Aave (AAVE) $ 165.86 2.20%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 82,374.07 0.31%
mantle
Mantle (MNT) $ 0.724892 2.54%
official-trump
Official Trump (TRUMP) $ 11.67 8.84%