(Reuters) – The S&P 500 was set to decline from a record high at the opening on Friday, with a rise in U.S. bond yields rekindled concerns about inflation and dampened appetite for high-growth stocks.
Futures accompanying the Nasdaq 100 index fell 1.3%, after recovering more than 6% in the last three sessions.
Still, the main Wall Street indices are set for their best week in six, after one of the biggest fiscal stimulus in the U.S. was sanctioned and the data showed less than expected unemployment insurance claim numbers.
US stock indexes are rebounding after being under pressure in recent weeks, as a steady increase in US bond yields has raised fears of a sudden reduction in the monetary stimulus.
Yield on 10-year benchmark notes rose again above 1.60% on Friday to approach the one-year high touched last week.
“The risks of accelerating inflation have increased significantly due to a jump in the money supply through stimuli and anticipated demand that we can see as the economy slowly unravels,” said Jonathan Bell, investment director at Stanhope Capital in London.
The improvement in economic data and more fiscal stimulus also raised concerns about higher inflation, despite the Federal Reserve’s guarantees of maintaining an accommodative policy. All eyes will now be on the central bank’s policy meeting next week for more clues about inflation.
Investors will look at consumer sentiment data for the University of Michigan later in the day.
At 8:36 am Eastern time, the S&P 500 E-minis fell 10.75 points, or 0.27%, and the Dow E-minis rose 62 points, or 0.21%.
Nasdaq was particularly hit by the liquidation in recent weeks and entered correction territory on Monday, with investors exchanging high-value technology stocks for shares in energy, mining and industrial companies that are about to benefit more from a economic recovery.
The income-sensitive group of Facebook Inc, Apple Inc, Amazon.com Inc, Netflix Inc, Alphabet Inc, Tesla Inc and Microsoft Corp, Google’s parent company, fell between 1% and 3% in the premarket.
Major American banks, including JPMorgan Chase & Co, Bank of America Corp and Citigroup Inc, were among the few winners in the first deals.
The US listed shares of China JD.com Inc fell nearly 3% after three sources said they were in talks to buy at least $ 1.5 billion in part of the brokerage at Sinolink Securities.
Cosmetics retailer Ulta Beauty Inc fell about 8% after forecasting below-estimated annual revenue, as demand for makeup products was under pressure due to extended work-at-home policies.
The company also named President Dave Kimbell as its new CEO.
Reporting by Medha Singh, Shashank Nayar and Sagarika Jaisinghani in Bengaluru; Editing by Maju Samuel