NEW YORK, May 10 — US stock index futures slid yesterday as rising US Treasury yields weighed on growth stocks amid prospects of aggressive policy tightening by the Federal Reserve, with fears of a sharp economic slowdown in China also dampening the sentiment.
Yield on the benchmark 10-year Treasury note rose to 3.19 per cent, its highest level since November 2018, as data last week underscored strength in the US economy and investors bet on bigger rate hikes by the Fed to curb surging inflation. Technology-focused growth stocks have faced the brunt of the selloff this year, as their returns and valuations are discounted more deeply when yields rise.
The S&P 500 growth index has dropped nearly 21 per cent year-to-date, compared to a 13.5 per cent fall in the benchmark S&P 500 index.