Futures cut back losses as benchmark Treasury yield drops

[September 28, 2022]  (Reuters) - U.S. stock index futures sharply pared losses on Wednesday and the Dow as well as S&P 500 e-minis briefly turned positive after the benchmark U.S. Treasury yield pulled back from a 12-year high. 

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 27, 2022. REUTERS/Brendan McDermid

The 10-year Treasury yield fell to 3.896%, helping ease the selling pressure on rate-sensitive growth stocks.

Futures also took relief from a Bank of England decision to buy as many long-dated government bonds as needed between now and Oct. 14 to stabilize financial markets.

At 6:34 a.m. ET, Dow e-minis were down 55 points, or 0.19%, S&P 500 e-minis were down 13.75 points, or 0.38%, and Nasdaq 100 e-minis were down 87.25 points, or 0.77%.

The Dow e-minis were briefly up 66 points, or 0.23% and S&P 500 e-minis added 3 points, or 0.08%, while Nasdaq 100 e-minis were down 27.75 points, or 0.24%.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Arun Koyyur)

[© 2022 Thomson Reuters. All rights reserved.]
This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.