TSLA - US Stock Futures Slump As Rising Bond Yields Rattle Investors Ahead Of Big Tech Earnings Deluge | Benzinga
The new trading week is poised to face a trifecta of challenges – earnings concerns, fears of rate hikes, and geopolitical tensions, all likely to impact the market. Stock futures indicate a moderately lower market opening on Monday.
Four major corporations, including Alphabet, Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), Microsoft, Inc. (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META), and Amazon, Inc. (NASDAQ:AMZN), are set to release their earnings reports this week. In the latter half of the week, significant economic data is scheduled for release.
On Monday, surging bond yields are expected to unsettle investors as the yield on the 10-year Treasury note has once again surpassed 5%. This rise reflects expectations of further interest rate increases in the current tightening cycle. Although the futures market has priced in a 98.46% probability of a pause decision at next week’s Federal Reserve meeting, the persistently high yields are a concern.
Cues From Last Week’s Trading:
In the week ending on Oct. 20, major stock indices experienced a sharp decline as robust economic data drove bond yields significantly higher. The market grew apprehensive about the Federal Reserve’s intention to further raise the federal funds rate within the present tightening cycle.
The release of disappointing earnings reports, including that of electric vehicle giant Tesla, Inc. (NASDAQ:TSLA), compounded concerns about corporate profit growth in the midst of an uncertain economic landscape.
The Nasdaq Composite Index and the S&P 500 both recorded losses for the fourth consecutive session, with the Nasdaq Composite Index posting back-to-back weekly declines. Both indices retreated to their lowest levels since early June. The Dow Industrials fell for a third consecutive session and concluded at its lowest level in over two weeks.
Small-cap stocks faced ...