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 0.9per cent to start the week. The index is still down more than 6per cent from its Feb. 12 record closing high.
Kansas City Southern jumped about 17per cent after Canadian Pacific Railway Ltd agreed to acquire the railroad operator in a US$25 billion cash-and-stock deal to create the first railway spanning the United States, Mexico and Canada.