Nasdaq futures drop as spike in bond yields hurts tech stocks

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Futures tracking the S&P 500 and the Dow slipped on Friday after ending at record closing highs in the prior session as a spike in U.S. bond ...

Futures tracking the S&P 500 and the Dow slipped on Friday after ending at record closing highs in the prior session as a spike in U.S. bond yields reignited inflation worries and dented appetite for high-growth stocks.

Nasdaq 100 futures were down 1.67per cent after rebounding more than 6per cent over the past three sessions.Still, Wall Street's main indexes are set for their best week in six after one of the largest U.S. fiscal stimulus was signed into law and data showed fewer-than-expected jobless claims numbers.

The yield on the benchmark 10-year notes rose back above 1.60per cent on Friday to approach the one-year highs touched last week. The Nasdaq has been particularly hit by the sell-off in recent weeks and entered correction territory on Monday as investors swapped richly valued technology stocks with those of energy, mining and industrials companies that are poised to benefit more from an economic recovery.The yield-sensitive group of Facebook Inc Apple Inc, Amazon.com Inc, Netflix Inc, Google-parent Alphabet Inc, Tesla Inc and Microsoft Corp were down between 1per cent and 3per cent in premarket trading.

 

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