Oct 5 (Reuters) – U.S. equity index futures fell on Wednesday ahead of key economic data as higher Treasury yields spurred selling of megacap growth stocks as recession fears stemmed from aggressive rate hikes central banks weighing on risk appetite.
After posting a loss in the previous quarter, the benchmark S&P 500 has gained 5.7% so far this week as yields fell for two straight sessions on weaker US economic data, the UK fiscal U-turn UK and lower than expected rate hike in Australia.
But as traders repriced their positions on how aggressively they expect the Federal Reserve to raise rates, 10-year Treasury yields rose sharply.
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Rate-sensitive technology and related stocks like Nvidia Corp (NVDA.O), Amazon.com (AMZN.O), Apple Inc (AAPL.O) and Alphabet Inc (GOOGL.O) fell between 0.7% and 0.9% in pre-market trade.
Twitter Inc (TWTR.N) also lost momentum online with its peers, a day after jumping 22% after billionaire Elon Musk decided to go ahead with his initial $44 billion bid to take the company private. social media. Read more
Banks such as Citigroup (CN) and JPMorgan Chase & Co fell more than 1% each.
Investors were waiting for the ADP private payroll report, S&P Services PMI data and the ISM non-manufacturing PMI for clues on the strength of the US economy and labor market.
Investors are also closely watching comments on inflation from Atlanta Fed Chairman Raphel Bostic, especially as several policymakers are already sticking to aggressive monetary policy to combat price pressures.
As of 6:43 a.m. ET, Dow e-minis were down 223 points, or 0.73%, S&P 500 e-minis were down 27.25 points, or 0.72%, and Nasdaq 100 e-minis were down 82 points, or 0.7%.
Emerson Electric Co (EMR.N) gained 2.2% after a media report that the manufacturing giant is in talks with U.S. buyout firm Blackstone Inc (BLK.N) to sell some of its commercial and residential assets. Read more
Shares of Chinese companies listed in the United States, including Alibaba Group and JD.com, rose 1.5% to 3.2%, following a jump from their Hong Kong counterparts.
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Reporting by Ankika Biswas and Bansari Mayur Kamdar in Bengaluru; Editing by Arun Koyyur
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