U.S. stock futures tumbled on Wednesday, with notable pressure ahead for the technology sector and rising bond yields in focus, while investors also waited for private-sector payrolls data. How are stock-index futures trading?
Dow Jones Industrial Average futures
fell over 300 points, or 1%, to 33,833
S&P 500 futures
dropped 1.2% to 4,280
dropped 1.4% to 14,444
On Tuesday, the Dow Jones Industrial Average
rose 312 points, or 0.92%, to 34315, the S&P 500
increased 45 points, or 1.05%, to 4346, and the Nasdaq Composite
gained 178 points, or 1.25%, to 14434.
What’s driving the market? Rising bond yields were set to derail chances of any follow-up to Tuesday’s gains. Some investors were seeking haven in the U.S. dollar
which rose as the yield on the 10-year Treasury note
gained 2 basis points to 1.544%. European and most Asian stocks fell. The combined effect of rising yields and a global energy crunch that seems to be approaching the U.S. is triggering “more negative sentiment,” said Saxo Bank’s chief investment officer, Steen Jakobsen, in a note to clients. “Yesterday’s session failed to take out the previous day’s high, so if the energy crunch narrative builds today with yields extending their rise, then we could see a renewed selloff,” said Jakobsen. U.S. natural-gas futures
rose 1.3% $6.312 per million British thermal units. after the highest finish since 2008 on Tuesday. Natural-gas prices tapped fresh records on Wednesday in the U.K. and Europe. Technology stocks looked set to lead any selloff, as rising yields can be a negative for shares of fast-growing companies as they make those future cash flows appear less valuable. Read: Analyst forecasts tech stock rebound of at least 10% and says rate fears will soon pass Economic data will swing into focus for investors, with the ADP employment report for September due at 8:15 a.m. Eastern Time. “The next big announcement on the radar is the U.S. jobs report on Friday — a weak number could prompt concern that we are heading for the dreaded stagflation scenario,” said AJ Bell investment director Russ Mould, in a note to clients. What companies are in focus?
Shares of Palantir Technologies Inc.
jumped 10% in premarket trading, after the data-software company said it won an Army contract worth $823 million.
How are other assets trading?
Oil futures fell, with the U.S. benchmark
down 0.5% to $78.52 a barrel. Gold futures
dropped 0.8% to $1,747.60 an ounce.
In Europe, the Stoxx Europe 600
fell 1.8%, while London’s FTSE 100
The Hang Seng Index
closed down 0.5% in Hong Kong, while Japan’s Nikkei 225
dropped 1%. Markets in China remain closed for a holiday.