U.S. futures drift, Treasuries dip; oil declines

U.S. futures fluctuated and a global bond selloff eased as investors weighed prospects for growth and corporate earnings amid rising bond yields and expectations of monetary tightening.

U.S. futures fluctuated and a global bond selloff eased as investors weighed prospects for growth and corporate earnings amid rising bond yields and expectations of monetary tightening.

Futures on the S&P 500 Nasdaq 100were little changed after Wall Street stocks on Monday ended a choppy session in the red, hurt by the technology sector. Peloton Interactive Inc. extended a slide in premarket trading after the Wall Street Journal reported the company’s chief executive is stepping down. Nvidia Corp. dropped after abandoning a proposed acquisition of chip designer Softbank Group Inc.

The Stoxx Europe 600 index trimmed an advance, with the basic-resources sector jumping more than 2 per cent as iron ore roared past US$150 a ton and aluminum headed toward a four-month high. BP Plc gained after reporting strong earnings and announcing a share buyback. Technology stocks, however, were deep in the red.

The 10-year Treasury yield briefly rose above 1.95 per cent, a level last seen in December 2019, before falling back to about 1.93 per cent as a global selloff in sovereign debt eased. Most European bonds gained. The dollar pared an early advance against a basket of peers.

Investors are awaiting data Thursday expected to show stubbornly high U.S. inflation. That could inject further volatility into financial markets bracing for a Federal Reserve cycle of rate hikes and eventual balance-sheet reduction. But the rise in yields could also support some equities, like banks and value stocks, according to Goldman Sachs Group Inc., amid generally solid earnings.