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Post: Market Snapshot: U.S. stock futures dropback, with tech under pressure as bond yields climb

U.S. stock index futures were pitching lower on Friday, with the technology sector set to bear the brunt of losses as Treasury yields rose, while and Deere & Co. shares tumbled after the economic bellwether missed earnings estimates.

How are stock-index futures trading?
  • Futures on the Dow Jones Industrial Average
    YM00,
    -0.68%

    fell 272 points, or 0.8%, to 33707

  • Futures on the S&P 500
    ES00,
    -0.83%

    dropped 41.50 points, or 0.9%, to 4246.

  • Futures on the Nasdaq 100
    NQ00,
    -0.97%

    decreased 141.50 points, or 1%, to 13381.

On Thursday, the S&P 500
SPX,
+0.23%

rose 0.2% to 4,283.74, the Dow industrials
DJIA,
+0.06%

rose less than 0.1% to close at 33,999.04 and the Nasdaq Composite
COMP,
+0.21%

gained 0.2% to finish at 12,965.34.

What’s driving markets?

Friday will be devoid of major U.S. economic data, leaving investors to deal with the monthly expiration of $2 trillion worth of stock and index options and comments from Federal Reserve officials.

Treasury yields were climbing on Friday as investors returned to the view that Fed large interest rates hikes were not over, with the 10-year yield
TMUBMUSD10Y,
2.958%

up 5 basis points to 2.913% and the 2-year
TMUBMUSD02Y,
3.271%

up 3 basis points to 3.238%.

Interest-rate sensitive tech stocks looked ready to bear the brunt, with Nasdaq futures falling. The Nasdaq Composite index is headed for a 0.6% weekly drop, while the S&P 500 is clinging to positive territory, after both indexes ended last week with a fourth-straight win, their longest weekly streak since November 2021.

St. Louis Fed President James Bullard told The Wall Street Journal that he would “lean toward” a 75 basis point hike at the central bank’s next Sept. 20-21 policy meeting. On the same day, investors heard more cautious comments from Kansas City Fed President Esther George, who said how fast hikes will happen remains up for debate.

On Friday Richmond Fed President Tom Barkin will speak at 9 a.m. Eastern Time. Investors are also focused on next week’s Jackson Hole Symposium, with Federal Reserve Chairman Jerome Powell and other central bank officials scheduled to speak.

Opinion: The Fed is not getting cold feet about wrestling inflation to the ground, so stop misreading its minutes

“It is patently clear that the Fed has inflation reduction as its main aim, even though it acknowledges the knock-on risk of derailing the economy,” said Richard Hunter, head of markets at interactive investor.

“The market is still pricing in a 0.5% interest rate rise in September, although there are increasing concerns that another 0.75% hike could be on the cards, with rates currently projected to peak at 3.5%. Separate comments from several Fed officials suggested that there remains some way to go before victory can be declared on taming inflation,” said Hunter, in a note to clients.

Data this week revealed flat U.S. retail sales and disappointing results from some major retailers, such as Target
TGT,
-1.31%

and Kohl’s
KSS,
-7.72%
,
but Thursday brought data showing weekly jobless benefit claims falling 2,000 to 250,000, with no signs of mass layoffs.

What companies are in focus?
How are other assets trading?

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