S&P 500 futures slipped 0.07% early Tuesday after the index shed 0.8% in the prior session, as a surge in Treasury yields to multi-decade highs continued to pressure equities. The Dow and Nasdaq also moved unevenly in futures trading following Monday losses tied to inflation and rate-hike concerns.
S&P 500 futures pare losses after rough session
S&P 500 futures fell 0.07% early Tuesday, paring back earlier losses seen in the session. Dow Jones Industrial Average futures declined 70 points, or 0.14%, while Nasdaq-100 futures inched 0.03% higher.
The moves came after a losing session Monday. The Dow fell more than 300 points in regular trading, while the S&P 500 and Nasdaq Composite shed 0.8% and 0.9%, respectively.
Treasury yields keep climbing
Treasury yields continued their march higher, as investors worried that persistent inflation would lead to rate increases from the Federal Reserve. The benchmark 10-year Treasury note yield ended Monday above 5.2%, near levels not seen since 2007. The 30-year Treasury topped 5.56%, trading around a 2004 high.
On Tuesday morning, the 10-year Treasury yield was little changed at 5.234%, while the 30-year Treasury yield fell 1 basis point to 5.549%.
According to Mark Haefele, chief investment officer at UBS Global Wealth Management: "We think investors should stay positioned for further equity gains", he said in a Tuesday morning note, adding that diversification should remain central to investors' exposure.
Fresh data due to sway rates
Investors will get fresh data on Tuesday that could sway Treasury yields. The September reading on U.S. consumer confidence is due at 10 a.m. ET, along with the August jobs opening and labor turnover survey.
Wall Street will also watch chipmaker AMD, which said it was acquiring AI firm World Labs for $8.2 billion, though its shares were little changed after hours. Overseas, Asian markets traded mostly lower while European shares moved broadly higher in morning trading.
Source: CNBC
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