S&P 500, Nasdaq futures slip as yields stay high, Tesla slides
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[March 02, 2023] (Reuters)
- Futures tracking the S&P 500 and Nasdaq fell on Thursday as the
10-year Treasury yield held above 4% on bets of tighter monetary policy
for a longer period, while Tesla sank after it gave few details about
its much-awaited affordable electric vehicle.
After a weak performance in February, Wall Street indexes began March on
a volatile note as fresh evidence of persistent price pressures and
comments from Federal Reserve policymakers fueled worries about the U.S.
central bank staying hawkish for longer.
The yield on 10-year Treasury notes - the benchmark for global borrowing
costs - raced further above the 4% level on Thursday to touch a fresh
four-month high of 4.046%.
Meanwhile, the 2-year yield eased slightly from 15-year highs hit
earlier in the session.
A Labor Department report at 8:30 a.m. ET is expected to show initial
jobless claims rose to 195,000 in the week ended Feb. 25, after it
climbed to 192,000 in the previous week.
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The benchmark S&P 500 and the tech-heavy Nasdaq fell on Wednesday after
data showed U.S. manufacturing contracted for a fourth straight month in
February, although raw material prices increased last month.
Traders of futures tied to the Fed's policy rate saw about an even
chance that the rate will get to a range of 5.5%-5.75% by September,
from the current range of 4.5% to 4.75%.
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A trader works on the floor of the New
York Stock Exchange (NYSE) in New York City, U.S., February 17,
2023. REUTERS/Brendan McDermid
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U.S. monthly payrolls and consumer prices data in the coming days
will further help investors gauge the path of rates heading into the
Fed's March 21-22 meeting, at which it is currently expected to
raise rates by 25 basis points.
At 07:06 a.m. ET, Dow e-minis were up 67 points, or 0.2%, S&P 500
e-minis were down 14.5 points, or 0.37%, and Nasdaq 100 e-minis were
down 61.75 points, or 0.52%.
Tesla Inc fell 5.8% in premarket trading after the investor day
event during which Chief Executive Elon Musk gave little details on
when it will unveil a much-awaited affordable electric vehicle.
Salesforce Inc soared 15.6% after the cloud-based software firm
forecast first-quarter revenue above analysts' estimates and doubled
its share repurchase to $20 billion. Meanwhile, Reuters reported
that activist investor Elliott Management has nominated candidates
to Salesforce's board.
Silvergate Capital slumped 31.3% after the cryptocurrency-focused
lender delayed its annual report and said it was evaluating its
ability to operate as a going concern.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Savio D'Souza)
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