U.S. stock index futures are basically flat after NASDAQ’s interest rate-triggered sell-off

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Before trading on the New York Stock Exchange was suspended on March 9, 2020, Meric Greenbaum, the designated market maker of IMC Finance, looked up at the board of directors before the market opened.

Timothy A. Clary | AFP | Getty Images

As bond yields soared and the stock market plummeted, the Nasdaq index had its worst day since March, and US stock index futures were basically flat on Tuesday night.

The Dow Jones Industrial Average futures rose 78 points, or 0.23%. Standard & Poor’s 500 Index and Nasdaq 100 Index futures rose 0.16% and 0.08%, respectively.

Semiconductor company Micron’s share price fell more than 4% in after-hours trading after the company announced its earnings and revenue outlook for the first quarter of 2022, but it was lower than generally expected.

In regular trading, the Nasdaq Composite Index fell 2.83% to 14,546.68, its worst day since March. The Standard & Poor’s 500 Index fell 2.04%, and the Dow Jones Industrial Average fell 569.38 points, or 1.63%.

The Dow Jones and Standard & Poor’s indexes fell 3% in September. The Nasdaq Index fell more than 4.5%.

As the benchmark 10-year US Treasury bond yield hit a high of 1.567% on Tuesday, stocks in all industries fell. Technology stocks led the market, with Facebook, Microsoft and Alphabet falling more than 3%. Amazon shares fell more than 2%. Rising bond yields hurt growth stocks, including technology stocks, because they reduce the relative value of future earnings. The Nasdaq index, which is dominated by technology stocks, fell for the 10th consecutive day in the past 15 trading days.

Brian Price, head of investment management at Commonwealth Financial Network, said: “Some people may think that market sentiment has become too high, and contrarian investors think this has laid the foundation for the market pullback we see today. “If interest rates start to rise moderately from now on when inflation expectations fall, then as we enter the fourth quarter, I will not be surprised to see the market continue to rise.”

The debt ceiling debate in Washington has also put pressure on the stock market, as well as continued concerns about supply chain issues and rising consumer prices.Federal Reserve Chairman Jerome Powell told the Senate Banking Committee on Tuesday that inflation May last longer than expected Due to supply chain issues and pressure to reopen.

Charlie Ripley, senior investment strategist at Allianz Investment Management, said: “Today’s interest rate sell-off is a reminder of the impact of monetary stimulus measures as the Federal Reserve hints that emergency stimulus measures are about to be quickly cancelled.” “For market participants. This is an uncomfortable period because the Fed’s support is about to be withdrawn, and the stock market will have to learn how to be self-reliant again. However, we should remind that the Fed is unlikely to move forward if they think the economy is not ready yet. Just reduce bond purchases.”

Pending housing sales data will be released on Wednesday.

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