Wall St set for lower open on lingering concerns over elevated rates
By Ankika Biswas and Shashwat Chauhan
(Reuters) -Wall Street's main indexes eyed a weak open on Monday as worries over interest rates staying higher for longer kept the 10-year Treasury yield buoyant, while investors awaited economic data and Federal Reserve policymakers' remarks throughout the week.
The S&P 500 and the Nasdaq registered their largest weekly percentage drop since March on Friday, as benchmark Treasury yields hit multi-year highs while investors digested the Fed's hawkish outlook revisions.
The three benchmark indexes, including the Dow, were also eyeing their first quarterly declines so far this year heading into the last days of the September quarter.
Just a few days after the Fed's decision to let its key rate stand and likely keep restrictive policy in place for longer than previously anticipated, some policymakers warned of further hikes as they doubt if the inflation battle is over.
Uncertainty around the trajectory for interest rates, including a potential hike by year-end and expectations for fewer cuts next year, have pushed the 10-year Treasury yield to a 16-year high, hurting growth stocks.
Alphabet (NASDAQ:GOOGL), Nvidia (NASDAQ:NVDA), Tesla (NASDAQ:TSLA) and Meta Platforms (NASDAQ:META) remained under pressure on Monday, losing between 0.6% and 1.6% in premarket trading.
Investors will now monitor data on durable goods and the Fed's preferred inflation gauge Personal Consumption Expenditures (PCE) price index for August, second-quarter GDP, and remarks by Fed policymakers including Chair Jerome Powell through the course of the week.
«Now we're in a time where the lag (from the Fed's policy tightening) is here and if so, its going to have its effect now, which is when you start to really watch
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