S&P 500, Nasdaq futures slip as yields stay high, Tesla slides

Thu Mar 02 2023
Mark Cooper (3111 articles)
S&P 500, Nasdaq futures slip as yields stay high, Tesla slides

Futures tracking the S&P 500 and Nasdaq fell on Thursday as the 10-year Treasury yield held above 4% on bets of tighter monetary policy for a longer period, while Tesla sank after it gave few details about its much-awaited affordable electric vehicle.

After a weak performance in February, Wall Street indexes began March on a volatile note as fresh evidence of persistent price pressures and comments from Federal Reserve policymakers fueled worries about the U.S. central bank staying hawkish for longer.

The yield on 10-year Treasury notes – the benchmark for global borrowing costs – raced further above the 4% level on Thursday to touch a fresh four-month high of 4.046%.

Meanwhile, the 2-year yield eased slightly from 15-year highs hit earlier in the session.

A Labor Department report at 8:30 a.m. ET is expected to show initial jobless claims rose to 195,000 in the week ended Feb. 25, after it climbed to 192,000 in the previous week.

Dow e-minis were up 67 points, or 0.2%, S&P 500 e-minis were down 14.5 points, or 0.37%, and Nasdaq 100 e-minis were down 61.75 points, or 0.52%.

Tesla Inc (TSLA.O) fell 5.8% in premarket trading after the investor day event during which Chief Executive Elon Musk gave little details on when it will unveil a much-awaited affordable electric vehicle.

Salesforce Inc (CRM.N) soared 15.6% after the cloud-based software firm forecast first-quarter revenue above analysts’ estimates and doubled its share repurchase to $20 billion. Meanwhile, Reuters reported that activist investor Elliott Management has nominated candidates to Salesforce’s board.

Silvergate Capital (SI.N) slumped 31.3% after the cryptocurrency-focused lender delayed its annual report and said it was evaluating its ability to operate as a going concern.

Mark Cooper

Mark Cooper

Mark Cooper is Political / Stock Market Correspondent. He has been covering Global Stock Markets for more than 6 years.