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Wall Street's main indexes have shed over 2% each this week
after a spate of strong economic data, including a fall in
weekly jobless claims, caused investors to dial back
expectations of rate cuts and drove up government bond yields.
The yield on the 10-year Treasury note hit a ten-month high of
4.328% in the previous session and came within a whisker of its
highest level since 2007. [US/]
"The relative strength of the U.S. economy is prompting fears of
rates sticking higher for longer across the Atlantic and a
potential shift from the current easing of inflationary
pressures. This is reflected in a big surge in U.S. government
bond yields," said Russ Mould, AJ Bell investment director.
On Friday, big technology and growth stocks slipped in premarket
trade even as Treasury yields eased, with Tesla down 1.7% and
leading declines.
Risk sentiment has also been hurt in recent days by China's
sluggish economic recovery and growing concerns about its
property market. U.S.-listed shares of Chinese companies JD.Com
and Alibaba Group fell 3.6% and 2.4% respectively.
Among major movers of the day, Applied Materials rose 3.2% after
the chip equipment maker forecast fourth-quarter profit above
analysts' estimates and posted better-than-expected
third-quarter earnings.
Estee Lauder and Deere & Co are among companies scheduled to
report quarterly earnings before the bell.
With no major economic data due on Friday, focus will now shift
to Federal Reserve Chair Jerome Powell's speech at the Jackson
Hole economic symposium next week.
Earnings from chip designer Nvidia, which have rallied this year
on enthusiasm around artificial intelligence, will also grab the
spotlight in the coming days.
At 5:27 a.m. ET, Dow e-minis were down 76 points, or 0.22%, S&P
500 e-minis were down 10.25 points, or 0.23%, and Nasdaq 100
e-minis were down 47 points, or 0.32%.
Shares of Keysight Technologies dropped 11.2% on the electronic
equipment maker's downbeat fourth-quarter forecast.
(Reporting by Amruta Khandekar; Editing by Maju Samuel)
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