U.S. stock futures were flat in overnight trading on Tuesday after the Dow Jones Industrial Average slipped from its record level amid fears about rising interest rates. Dow futures rose 30 points. SP 500 and Nasdaq 100 futures rose 0.15 and 0.16, respectively. The major averages were pressured Tuesday by rising interest rates, as the U.S. 10year Treasury yield notched a 14month high of 1.77. Bond yields have been on the rise this year amid a strong Covid19 vaccine rollout and expectations of a broad economic recover.
The Dow Jones Industrial Average lost more than 100 points, falling from a record high reached on Monday. The SP 500 fell about 0.3. The Nasdaq Composite dipped about 0.1 as Facebook, Amazon, Apple, Netflix and Microsoft declined. Big Tech stocks are especially sensitive to rising rates as they depend on borrowing money cheaply to invest in their future growth. Reopening plays like airlines and cruise lines popped on Tuesday after consumer confidence data topped expectations.
Investors are awaiting details on President Joe Bidens infrastructure plan on Wednesday. The spending package could cost more than of 3 trillion. Private payroll data from ADP will be released at 915 a.m. on Wednesday morning. Economists polled by Dow Jones are expecting 525,000 private jobs were added in March, well above the 171,000 added in February.