Your current location is:{Current column} >>Text

Nasdaq futures slide 2% as higher yields pressure growth stocks By Reuters

{Current column}36482People have watched

Introduction© Reuters. A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, N ...

Nasdaq futures slide 2% as higher yields pressure growth stocks© Reuters. A trader works on How to invest in foreign exchange to make moneythe 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.

Nasdaq futures slide 2% as higher yields pressure growth stocks By Reuters

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.

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

Tags:

Related articles