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U.S. stock futures were weaker Wednesday, with tech stocks again pressured on concern over rising interest rates ahead of a key report from the Federal Reserve.
What’s happening
-
Futures on the Dow Jones Industrial Average
YM00,
-0.01%
fell 7 points to 36,668. -
Futures on the S&P 500
ES00,
-0.08%
fell 5 points, or 0.1%, to 4,779. -
Futures on the Nasdaq-100
NQ00,
-0.37%
fell 0.4%, or 68 points, to 16,208.
On Tuesday, the Dow Jones Industrial Average
DJIA,
rose 215 points, or 0.6%, to close at a record 36,800, while the S&P 500
SPX,
fell less than 0.1% and Nasdaq Composite
COMP,
dropped 1.3%.
What’s driving markets
With the 17-basis point surge in the 10-year yield
TMUBMUSD10Y,
over the first two trading days of 2021, investors on Tuesday boosted value stocks including in the financial and industrial sector, and shunned technology plays.
“What is really amazing is the speed and magnitude these names have been taken down, while the major indices are near all time highs,” said Matthew Tuttle, chief investment officer of Tuttle Capital Management, referring to growth stocks.
The minutes from the latest Federal Open Market Committee meeting, he said, could have a big impact given the focus on rising interest rates and higher inflation at the moment. Those minutes are due for release at 2 p.m. Eastern. At that December meeting, Fed policy makers agreed to speed the wind-down of the central bank’s monthly asset purchases, putting them on track to end in March.
The highflying automotive sector also will be in the spotlight, after rallies for Tesla
TSLA,
and Ford Motor Co.
F,
on successive days. General Motors
GM,
is set to release an all-electric Chevy Silverado on Wednesday, while Sony
SONY,
rallied in Tokyo trade after setting up an electric vehicle unit.
