Futures snap back after previous session's mauling
By Ankika Biswas and Shashwat Chauhan
(Reuters) -U.S. stock index futures rebounded on Wednesday as easing Treasury yields boosted megacaps, while investors awaited developments on a U.S. funding bill and inflation data this week to gauge the outlook for the Federal Reserve's monetary policy.
A pullback in the 10-year Treasury yields provided some relief to megacap growth stocks including Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Tesla (NASDAQ:TSLA) and Alphabet (NASDAQ:GOOGL), up between 0.4% and 0.6%, in premarket trading.
Amazon.com (NASDAQ:AMZN) edged 0.2% higher after Tuesday's sell-off following the U.S. Federal Trade Commission's antitrust lawsuit against the online retailer.
At 7:10 a.m. ET, Dow e-minis were up 92 points, or 0.27%, S&P 500 e-minis were up 15.75 points, or 0.37%, and Nasdaq 100 e-minis were up 51.75 points, or 0.35%.
All the three major stock indexes closed over 1% lower on Tuesday as 10-year Treasury yields held their multi-year highs, with investors wrestling with prospects for a long period of high interest rates and an economic fallout.
«Despite the possibilities of a market recovery as window dressing in the last days of the quarter is likely to occur, the near-term outlook remains weak,» said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
However, markets are bracing for some more volatility, with policymakers projecting elevated rates until the end of 2024, boosting Treasury yields, which are sensitive to interest rate expectations and seen as risk-free due to government backing.
The S&P 500 and the Nasdaq are set for their worst monthly showing so far this year, while all the three indexes including the Dow are eyeing their first quarterly decline in
Read more on investing.com
