U.S. futures pointed to a lower open on Wall Street Monday, as rising bond yields and increasing interest rates made equities less attractive to investors.
The S&P 500 futures fell 7 points or 0.25% to 2,886.75 as of 6:50 AM ET (10:50 GMT) while Dow futures were down 87 points, or 0.33%, to 26,405.0. Meanwhile tech heavy Nasdaq 100 futures decreased 26 points, or 0.35%, to 7,410.0.
U.S. bond markets are closed for Columbus Day but stock markets are open. Still, trading volumes were expected to be thin, with most banks and federal agencies closed for the holiday.
Concerns over rising bond yields weighed on investors, as the yield on the benchmark United States 10-Year note reached its highest level seen since 2011 on Friday. It climbed about 15 basis points last week and is up about 20 basis points over the last month.
Tesla (NASDAQ:TSLA) was among the top gainers in premarket trading, rising 1.63%, while General Electric (NYSE:GE) surged 2.05%.
Elsewhere, Fiat Chrysler Automobiles NV (NYSE:FCAU) slumped 3.22% while Jd.com was down 1.65% and Netflix (NASDAQ:NFLX) lost 0.95%. Facebook (NASDAQ:FB) inched down 0.29% while Perrigo Co (NYSE:PRGO) slipped 0.36%.
Amazon (NASDAQ:AMZN) decreased 0.72% and Apple (NASDAQ:AAPL) fell 0.24% despite the U.S. Department of Homeland Security saying it did not doubt the tech companies claims that reports of Chinese spyware in their servers were false.
In Europe stocks were down. Germany’s DAX fell 95 points or 0.79% while in France the CAC 40 was down 46 points or 0.86% and in London the FTSE 100 decreased 44 points or 0.61%. Meanwhile the pan-European Euro Stoxx 50 lost 23 points or 0.69% while Spain’s IBEX 35 slumped 62 points or 0.68%.
In commodities, gold futures fell 0.70% to $1,197.20 a troy ounce while crude oil futures decreased 1.51% to $73.22 a barrel. The U.S. dollar index which measures the greenback against a basket of six major currencies, increased 0.31% to 95.61.