US Stock Index Futures Slip Amid Rising Treasury Yields and Inflation Concerns

US stock index futures dropped on Monday as investors grew cautious over expensive equity valuations, climbing Treasury yields, and rising inflation concerns. The shares of high-flying technology-related companies, including Apple, Microsoft, and Amazon, resumed their declines from the previous week, falling between 1% and 2.9% in early trading. The decline comes despite a largely upbeat fourth-quarter earnings report, which propelled Wall Street's main indexes to record highs earlier in the week.

Key Takeaways:

• US stock index futures slipped on Monday, with Dow e-minis down 186 points, or 0.59%, S&P 500 e-minis down 30.5 points, or 0.78%, and Nasdaq 100 e-minis down 186.25 points, or 1.37%.
• Shares of high-flying technology-related companies, including Apple Inc, Microsoft Corp, Facebook Inc, Alphabet Inc, Tesla Inc, Netflix Inc, and Amazon.com Inc, fell between 1% and 2.9% in trading before the bell.
• The decline comes as investors became cautious over pricey equity valuations, climbing Treasury yields, and rising inflation concerns.
• Jerome Powell, Federal Reserve Chair, is expected to reiterate a commitment to keeping policy super easy to drive inflation higher in his semi-annual testimony before Congress this week.
• Cyclical stocks have benefited recently from a rotation out of technology-related shares on hopes that they stand to gain from pent-up demand once the coronavirus pandemic is subdued.
• Boeing Co dropped 3.9% after a United Airlines plane's engine shed debris over Denver, prompting the planemaker to urge airlines to suspend the use of its 777 jets with Pratt & Whitney 4000 engines.
• Raytheon Technologies Corp, which owns Pratt & Whitney, also fell 2.9%.

Statistics:

• 10-year Treasury yields rose to 1.38%, above the psychological 1.30% level.
• Dow e-minis were down 186 points, or 0.59%, at 6:53 a.m. ET.
• S&P 500 e-minis were down 30.5 points, or 0.78%, at 6:53 a.m. ET.
• Nasdaq 100 e-minis were down 186.25 points, or 1.37%, at 6:53 a.m. ET.

Sources:

• Reuters, By Devik Jain (Reuters)
• Reuters, Editing by Anil D'Silva
• Reuters, Our Standards: The Thomson Reuters Trust Principles
• Reuters, Reuters © 2021 Yerepouni Daily News. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info)