Constellation Research founder Ray Wang on his outlook for technology stocks like Coupang and Roblox.
The Nasdaq was set to open sharply lower Friday morning as the 10-year yield neared its highest level of the year.
Nasdaq futures were lower by 1.2% while S&P 500 futures declined 0.25%. Dow Jones Industrial Average futures, meanwhile, traded up 0.2%.
The early weakness comes as aggressive selling of longer-dated U.S. Treasurys caused the 10-year yield to rise 7 basis points to 1.6%, which would be its highest close since February 2020. The benchmark yield has recently traded as high as 1.63%.
Looking at stocks, high-growth companies including mega-cap technology names like Tesla Inc., Microsoft Corp. and Facebook Inc. were all lower.
Elsewhere, financials outperformed as the yield curve steepened with lenders Bank of America Corp. and Wells Fargo & Co among the top performers.
Meanwhile, Novavax Inc.’s COVID-19 vaccine was found to be 96% effective against the original version of the virus, according to a U.K. study. However, the vaccine was 86% effective against the U.K. variant and only 55% effective against the South African strand.
AstraZeneca plc and Oxford University’s COVID-19 vaccine was suspended in Thailand due to blood clots in some recipients. The vaccine has also been put on hold in eight European countries, including Norway and Denmark.
In earnings, Ulta Beauty Inc. reported quarterly earnings and revenue that exceeded Wall Street estimates, but issued disappointing full-year guidance amid concern masking and social-distancing orders will remain in place for much of 2021. The company also announced that CEO Mary Dillon will step down in June and be replaced by President Dave Kimbell.
In commodities, West Texas Intermediate crude oil fell 10 cents to $65.92 a barrel and gold slumped $22.20 to $1,700.40 an ounce.
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European markets were lower across the board with Germany’s DAX 30 down 0.75%, Britain’s FTSE 100 slipping 0.14% and France’s CAC 40 easing 0.11%.
In Asia, Hong Kong’s Hang Seng index lost 2.2% while China’s Shanghai Composite Index and Japan’s Nikkei 225 advanced 0.47% and 1.73%, respectively.
