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The blue-chip Dow erased its year-to-date gains after Friday’s selloff and the benchmark S&P 500 logged its third consecutive week of losses due to stronger-than-expected economic data and signs of elevated inflation.
Futures pointed to a slight recovery in market sentiment on Monday as some of the rate-sensitive growth stocks rose in premarket trading.
Tesla (NASDAQ:TSLA) rose 2% after the electric carmaker said its plant in Brandenburg near Berlin is producing 4,000 cars per week, three weeks ahead of schedule according to a recent production plan reviewed by Reuters.
However, U.S. Treasury yields continued to rise, with the yield on two-year notes, which are the most sensitive to short-term interest rate expectations, rising as high as 4.84% to touch its strongest level since Nov 4.
Some traders are even betting on a 50-basis-point rate hike in March, although the odds are low at around 25%, after data last week showed the Personal Consumption Expenditures price index, the metric by which the Fed measures its 2% inflation target, rose 5.4% last month from a year earlier.
At 05:44 a.m. ET, Dow e-minis were up 135 points, or 0.41%, S&P 500 e-minis were up 18.25 points, or 0.46%, and Nasdaq 100 e-minis were up 64 points, or 0.53%.
Seagen Inc surged 14.9% after the Wall Street Journal reported that Pfizer (NYSE:PFE) was in early talks to acquire the biotech firm. Pfizer’s shares slipped 2.2%.
U.S. railroad operator Union Pacific (NYSE:UNP) jumped 6.4% as Chief Executive Officer Lance Fritz said he would step down this year, a move that follows calls from hedge fund Soroban Capital Partners for his ouster.
