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Although longer-dated U.S. Treasury yields eased from 16-year
highs on Wednesday, investors remain concerned that the elevated
levels may pressure equities.
Worries about U.S. government spending and its ballooning budget
deficit have added to uncertainty around the interest rates
trajectory, contributing to a steep selloff that have caused a
rout in Treasury prices and a spike in yields.
The S&P 500 and the Nasdaq lost around 5% and 6% in September.
Megacap growth stocks Apple, Microsoft, Tesla, Amazon.com and
Alphabet fell between 0.3% and 0.6% in premarket trading on
Thursday.
Following a mixed jobs reports earlier this week, focus will be
on the more-comprehensive September non-farm payrolls data on
Friday. Weekly jobless claims are also due later on Thursday.
Traders put the chance of interest rates remaining unchanged in
November and December at 80% and 63%, respectively, according to
CME's FedWatch tool.
Federal Reserve policymakers including Cleveland's Loretta
Mester, Minneapolis' Neel Kashkari, Richmond's Thomas Barkin,
San Francisco's Mary Daly and Vice Chair for Supervision Michael
Barr are set to speak during the day.
The race to replace ousted House Speaker Kevin McCarthy took
shape on Wednesday as Steve Scalise, the chamber's No. 2
Republican, and Jim Jordan, a leading antagonist of Democratic
President Joe Biden, said they would seek the post.
At 5:24 a.m. ET, Dow e-minis were down 131 points, or 0.39%, S&P
500 e-minis were down 16.75 points, or 0.39%, and Nasdaq 100
e-minis were down 53.5 points, or 0.36%.
Clorox fell 4.6% as the cleaning products maker said it expects
to post a first-quarter loss.
(Reporting by Ankika Biswas in Bengaluru; Editing by Shounak
Dasgupta)
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