US STOCKS-Futures point to gains for tech-related stocks as bond yields ease

  • Reuters
  • Stock Market News
US STOCKS-Futures point to gains for tech-related stocks as bond yields ease
Credit: © Reuters.

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* Futures: Dow down 0.24%, S&P up 0.04%, Nasdaq rises 0.83%

By Medha Singh

March 22 (Reuters) - Futures tracking the S&P 500 and the Nasdaq rose on Monday, with heavyweight technology stocks set to rebound after a surge in bond yields in recent weeks sparked a flight from richly valued equities.

A sharp run up in Treasury yields since mid-February has dictated the course of equities trading, while weighing on high-growth tech stocks, whose valuations look stretched.

Futures tied to the tech-heavy Nasdaq 100 climbed about 0.9% to start the week. The index .NDX is still down more than 6% from its Feb. 12 record closing high.

The S&P 500 .SPX and the Dow .DJI , however, clinched all-time highs as early as last week on bets that stimulus and vaccine rollouts would lead to a strong rebound in the U.S. economy.

Kansas City Southern (NYSE: KSU ) KSU.N jumped about 17% after Canadian Pacific Railway Ltd CP.TO agreed to acquire the railroad operator in a $25 billion cash-and-stock deal to create the first railway spanning the United States, Mexico and Canada. 06:34 a.m. ET, Dow E-minis 1YMcv1 were down 79 points, or 0.24%, S&P 500 E-minis EScv1 were up 1.75 points, or 0.04% and Nasdaq 100 E-minis NQcv1 were up 106.75 points, or 0.83%.

Intel Corp INTC.O , Microsoft Corp MSFT.O and Apple Inc AAPL.O led gains among Dow components in trading before the bell.

Big U.S. lenders including Goldman Sachs (NYSE: GS ) GS.N , Citigroup (NYSE: C ) C.N and Bank of America (NYSE: BAC ) BAC.N , which have enjoyed a rally on brightening economic prospects, slipped about 1% each.

The iShares MSCI Turkey ETF TUR.O sank about 19% as President Tayyip Erdogan's decision to oust a hawkish central bank governor sparked fears of a reversal of recent rate hikes.

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