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Shares of Apple Inc, Microsoft Corp, Facebook Inc, Alphabet Inc,
Tesla Inc, Netflix Inc and Amazon.com Inc resumed their declines
from the previous week, falling between 1% and 2.9% in trading
before the bell.
A largely upbeat fourth-quarter earnings had powered Wall
Street's main indexes to record highs earlier last week, but the
rally lost steam on fears of a potential snag in countrywide
inoculation efforts and inflation concerns rising from a raft of
stimulus measures.
Federal Reserve Chair Jerome Powell in his semi-annual testimony
before Congress this week is likely to reiterate a commitment to
keeping policy super easy for as long as needed to drive
inflation higher.
The Dow closed almost flat for the week on Friday, while the
benchmark S&P 500 and the tech-heavy Nasdaq posted their first
weekly declines this month.
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.
Yields on 10-year Treasury notes have already reached 1.38%,
above the psychological 1.30% level. [MKTS/GLOB]
At 6:53 a.m. ET, Dow e-minis were down 186 points, or 0.59%, S&P
500 e-minis were down 30.5 points, or 0.78%, and Nasdaq 100
e-minis were down 186.25 points, or 1.37%.
Boeing Co dropped 3.9% after a United Airlines plane's engine
shed debris over Denver on Saturday, 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%.
(Reporting by Devik Jain in Bengaluru; Editing by Anil D'Silva)
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