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* Futures down: Dow 0.6%, S&P 0.4%, Nasdaq 0.7%
Feb 26 (Reuters) – U.S. inventory index futures retreated on Friday as lofty tech shares bled additional amid elevated U.S. bond yields and prospects of a spike in inflation.
Shares of Apple Inc, Amazon.com Inc, Microsoft Corp, Alphabet Inc, Fb Inc and Netflix Inc have been down between 0.6% and 0.9% earlier than the bell.
The S&P 500 and the Nasdaq have been knocked off their all-time highs final week after a pointy rise in U.S. Treasury yields triggered revenue taking in a few of the mega-cap expertise shares.
“Greater yields and steeper curves are usually good for financials however much less so for tech,” stated Karen Ward, chief market strategist EMEA at J.P. Morgan Asset Administration.
“These sectoral shifts may even possible dictate different rotations akin to from development in direction of worth.”
The Dow is poised for its finest month since November 2020 as traders purchased into cyclical firms set to profit from an financial reopening, whereas the Nasdaq stays on observe to wipe out practically all of its beneficial properties for the month.
At 06:50 a.m. ET, Dow E-minis have been down 183 factors, or 0.58%, S&P 500 E-minis have been down 16.75 factors, or 0.44%, and Nasdaq 100 E-minis have been down 96.5 factors, or 0.75%.
Information on U.S. private consumption, which incorporates one of many Federal Reserve’s favored inflation measures, is anticipated to indicate core inflation dipped to 1.4% in January, which might assist calm market worries.
Stimulus shall be again in focus because the Democratic-controlled U.S. Home of Representatives goals to go President Joe Biden’s $1.9 trillion coronavirus assist invoice on Friday in what can be the primary main legislative victory of his presidency.
GameStop Corp jumped 10% premarket as retail traders pushed up the inventory in a renewed rally that might see it clock its second finest week.
Salesforce.com Inc slipped about 3% as the web software program firm forecast full-year revenue beneath market expectations. (Reporting by Devik Jain and Medha Singh in Bengaluru; Modifying by Saumyadeb Chakrabarty)
— to www.reuters.com