Futures put under pressure by rising yields; Tesla on record deliveries

October 4 (Reuters) – U.S. stock indexes were expected to open lower on Monday, with most major tech stocks under pressure from rising Treasury yields, while Tesla shares rose after reporting a record number of deliveries of electric vehicles.

US Treasury yields have been supported by recent data showing increased consumer spending, accelerated industrial activity and high inflation growth, fueling bets that the Federal Reserve could start tightening its accommodative monetary policy sooner. provided that. [US/]

High growth companies including Apple Inc (AAPL.O), Facebook Inc (FB.O), Microsoft Corp (MSFT.O), Alphabet Inc (GOOGL.O) and Amazon.com Inc (AMZN.O) fell between 0.2% and 0.9% in pre-market trade.

“In the rising rate environment, historically you have been rewarded for being in value and cyclical economically sensitive stocks, relative to technology. That doesn’t mean technology will collapse, it’s just to say that cyclicals should do better in the coming months, ”said Thomas Hayes, managing member of Great Hill Capital LLC in New York.

“The markets are really focused on Washington and the uncertainty of their inability to agree on the infrastructure bill, the social spending plan and raising the debt ceiling.”

Major Wall Street indexes took a rough ride in September, hit by concerns about the US debt ceiling, the fate of a huge infrastructure spending bill and the collapse of the China Evergrande (3333.HK) group heavily. indebted.

Trading in debt-laden Evergrande shares was halted on Monday, further destabilizing markets over the consequences of its problems, even as media reported the company would sell a stake in its property management unit for more than $ 5 billion. Read more

Markets were also awaiting US President Joe Biden’s new plan on China’s trade strategy, with US Trade Representative Katherine Tai scheduled to start new talks with Beijing later today over its failure to deliver on promises made in China. a “phase 1” trade deal with former President Donald. Asset. Read more

As of 8:24 a.m. ET, Dow e-minis were down 86 points, or 0.25%, S&P 500 e-minis were down 13.25 points, or 0.31%, and e-minis Nasdaq 100 were down 63.25 points, or 0.43%.

Tesla Inc (TSLA.O) rose 2.5% after delivering a record third quarter electric car, beating Wall Street estimates on Saturday. Read more

Merck & Co (MRK.N) added 3.5%, building on Friday’s gains after developing an experimental antiviral pill that could halve the risk of death or hospitalization for those most at risk to contract severe COVID-19. Read more

Shares of 3M Co (MMM.N) fell 1.5% after JP Morgan downgraded its rating on the industrial conglomerate’s shares from “neutral” to “overweight”.

The first trial by four major drugstore chains into the deadly opioid epidemic in the United States was scheduled to begin on Monday, putting pressure on the actions of Walgreens Boots Alliance Inc (WBA.O), CVS Health Corp (CVS.N) and Walmart Inc (WMT.N), down 0.1% to 0.6%. Read more

Reporting by Shreyashi Sanyal and Devik Jain in Bengaluru; Editing by Maju Samuel

Our Standards: The Thomson Reuters Trust Principles.