Traders on the floor of the NYSE
Source: NYSE
U.S. stock futures fell Tuesday as higher rates continue to pressure market sentiment.
Dow Jones Industrial Average futures dropped 274 points, or 0.8%. S&P 500 futures also slid 0.8%, and Nasdaq-100 futures pulled back by nearly 1%. U.S. markets were closed Monday due to the Presidents Day holiday.
Home Depot shares fell 3.8% in the premarket after the home improvement retailer posted weaker-than-expected revenue for the fourth quarter. The company also issued a muted outlook. Walmart, another Dow component, also fell more than 2% after posting its latest quarterly results.
The benchmark 10-year Treasury yield climbed to 3.87%, while the 2-year rate advanced to 4.669%. Those moves build on last week's gains for yields, which rose as traders grappled with hotter-than-expected inflation data. Traders are worried that stubborn inflation will lead the Federal Reserve to keep rates higher for longer — which could tip the economy into a recession.
Those concerns kept equities in check last week. The Dow fell 0.1%, marking its third straight weekly decline. The S&P 500 slid for a second consecutive week, losing 0.3%. The tech-heavy Nasdaq Composite bucked the trend, rising 0.6%.
"We believe a recession is virtually inevitable, but we do not believe it will begin until sometime between the beginning and the middle of 2024," Doug Peta, chief U.S. investment strategist at BCA Research, said in a note. "Such a delay would give equities a window to rally."
The Fed on Wednesday is scheduled to release the minutes from its meeting of Jan. 31 and Feb. 1. The central bank hiked rates by 25 basis points after that meeting.
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February 21, 2023 at 07:22PM
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Dow futures fall more than 200 points to start the week, Home Depot drops: Live updates - CNBC
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