Stock futures were lower early Monday morning as Wall Street looks to shake off a losing week.
Futures tied to the S&P 500 dipped 0.6%, and Nasdaq 100 futures slid 1.02%. Dow Jones Industrial Average futures slipped 0.3%.
Those moves came as U.S. Treasury yields hit a new 3-year high overnight. On Sunday evening, the 10-year Treasury yield hit 2.7741%, and topped 2.76% Monday morning to start the week. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Twitter’s stock price fell in premarket trading Monday after CEO Parag Agrawal revealed that Elon Musk abandoned his plan to join the company’s board. Shares for the social media company dropped more than 8% before recovering some losses. At 7:56 a.m. ET, shares were down 2.4%.
Wall Street is coming off a negative week, with the tech sector being a source of concern. The tech-heavy Nasdaq Composite fell 3.9% last week, while the S&P 500 and Dow dropped 1.3% and 0.3%, respectively.
The health-care sector was a bright spot, gaining more than 3%.
The fight against inflation is likely to be a market driver this week. Investors will get a look at fresh data, with the consumer price index for March due out on Tuesday and the producer price index following on Wednesday.
Cleveland Fed President Loretta Mester told CBS’ “Face the Nation” on Sunday that she still believes the Fed can get inflation under control without causing major damage to the economy.
“If you look at the risks, given what’s happening in the world and in the economy, there is an increased risk [of recession],” she said. “But I remain optimistic, and certainly my modal forecast on what is going to happen this year is that the expansion will continue.”
Mester added that the Covid lockdowns in China will “exacerbate” the supply chain issues that are contributing to inflation in the U.S.
Investors will also be keeping an eye on developments in Ukraine. Russia’s invasion of the country has caused volatility in oil and other commodities markets, which has, in turn, disturbed stocks.
Later this week, the first-quarter earnings season will hit its stride, with JPMorgan Chase and Delta set to report results on Wednesday morning.
Correction: A previous version of this story misspelled Mester’s last name.
