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Megacap growth names such as Amazon.com Inc, Apple Inc,
Microsoft Corp, Meta Platforms Inc and Tesla Inc lost between
0.8% and 1.6% in premarket trading.
U.S. stocks ended sharply higher on Wednesday, as markets
globally took heart from the Bank of England seeking to
stabilize UK markets after a turmoil caused by the government's
new economic plan.
But calm from the BoE's bond purchases promise proved
short-lived with a rout in gilts spilling over into even
safe-haven U.S. Treasuries and top-rated German bonds.
Wall Street's main indexes have been battered this year, with
surging U.S. bond yields further diminishing the appeal for
stocks as investors found more attractive alternatives in U.S.
Treasuries.
The yields on many Treasuries - which are considered virtually
risk-free if held to maturity - now dwarf the S&P 500's dividend
yield, which recently stood at about 1.8%, according to
Refinitiv Datastream.
At 5:15 a.m. ET, Dow e-minis were down 225 points, or 0.76%, S&P
500 e-minis were down 31.25 points, or 0.84%, and Nasdaq 100
e-minis were down 117.75 points, or 1.02%.
American Airlines fell about 2.4% as carriers canceled almost
2,000 U.S. flights for Thursday after Hurricane Ian hit
Florida's Gulf Coast with catastrophic force in one of most
powerful U.S. storms in recent years.
U.S. cruise companies Norwegian Cruise Line Holdings Ltd and
Carnival Corp fell about 2.5% each after they delayed or
canceled trips in anticipation of the hurricane.
Investors will be watching for weekly jobless claims, which is
expected to rise by 2,000 to 215,000 last week. Final economic
growth figures for the second quarter are also due. A second
estimate of the government last month had shown the economy
contracted at 0.6%, a more moderate pace than initially thought.
(Reporting by Susan Mathew in Bengaluru; Editing by Anil D'Silva)
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