Wall Street stocks fell at the open on Tuesday, as rising Treasury yields piled on pressure and investors got a reminder not to expect a Federal Reserve interest-rate cut any time soon.
The S&P 500 (^GSPC) dropped almost 0.7%, while the Dow Jones Industrial Average (^DJI) about 0.6%. The tech-heavy Nasdaq Composite (^IXIC) was down over 0.8%, after closing with a gain on Monday.
Hawkish comments by Fed policymakers reminded investors that resilience in the US economy likely means borrowing costs will stay higher for longer. Traders are now pricing in odds of 29% that policymakers will hike rates at their November meeting, compared with 16% a week ago, according to the CME’s FedWatch tool.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
That prospect helped 10-year (^TNX) and 30-year Treasury yields (^TYX) rise to 16-year highs on Tuesday — a selloff in bonds that, combined with surges in oil prices and the dollar, has dampened appetite for stocks. The Russell 2000 index of small-caps turned negative for the year on Monday.
Given that, the focus has turned to upcoming economic readings and the start of earnings season next week that could prove positive catalysts. Tuesday brings the latest read on job openings in the JOLTS report for August, a lead-in to the highly anticipated September US jobs report on Friday.
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Point Biopharma, Boeing, and McCormick: Stocks trending in premarket trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page in premarket trading on Tuesday:
Point Biopharma (PNT): Shares in the company rose 84%. Eli Lilly and Co will buy the cancer therapy developer for $1.4 billion, the companies said on Tuesday.
Boeing (BA): Boeing stock fell slightly on Tuesday. Boeing plans to push production of its 737 narrow-body jet to a record of at least 57 per month by July 2025.
McCormick (MKC): Shares were down 5% in premarket trading on Tuesday. It raised its annual profit forecast as it expects higher prices for its spices and condiments to make up for slowing demand.
China Evergrande Group (3333.HK): Shares rose 28% after trading resumed for the property developer.
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KStock futures waver amid Fed hike worries
Stocks on Wall Street hovered around the flatline ahead of the open as hawkish comments from Federal Reserve officials underscored the message that interest rates will stay higher for longer.
Futures on the S&P 500 (^GSPC) and on the Dow Jones Industrial Average (^DJI) both dipped 0.01%, Contracts on the tech-heavy Nasdaq 100 were down 0.10%.
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