This post was originally published on this site
(Reuters) – Futures tracking the S&P 500 and the Nasdaq rose on Monday, with heavyweight technology stocks set to rebound after a surge in bond yields in recent weeks sparked a flight from richly valued equities.
A sharp run up in Treasury yields since mid-February has dictated the course of equities trading, while weighing on high-growth tech stocks, whose valuations look stretched.
Futures tied to the tech-heavy Nasdaq 100 climbed about 0.9% to start the week. The index is still down more than 6% from its Feb. 12 record closing high.
The S&P 500 and the Dow, however, clinched all-time highs as early as last week on bets that stimulus and vaccine rollouts would lead to a strong rebound in the U.S. economy.
Kansas City Southern (NYSE:KSU) jumped about 17% after Canadian Pacific (NYSE:CP) Railway Ltd agreed to acquire the railroad operator in a $25 billion cash-and-stock deal to create the first railway spanning the United States, Mexico and Canada.
At 06:34 a.m. ET, Dow E-minis were down 79 points, or 0.24%, S&P 500 E-minis were up 1.75 points, or 0.04% and Nasdaq 100 E-minis were up 106.75 points, or 0.83%.
Intel Corp (NASDAQ:INTC), Microsoft Corp (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL) led gains among Dow components in trading before the bell.
Big U.S. lenders including Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) and Bank of America (NYSE:BAC), which have enjoyed a rally on brightening economic prospects, slipped about 1% each.
The iShares MSCI Turkey ETF sank about 19% as President Tayyip Erdogan’s decision to oust a hawkish central bank governor sparked fears of a reversal of recent rate hikes.
