Traders work on the floor of the New York Stock Exchange (NYSE) on October 30, 2023 in New York City.
Spencer Platt | Getty Images
U.S. stock futures fell on Tuesday as rates ticked higher, bucking momentum from the previous session’s technology jump.
Dow Jones Industrial Average futures lost 151 points, or 0.4%. S&P 500 futures decreased by 0.4% and Nasdaq 100 futures decreased by 0.6%.
Shares of Juniper Networks jumped more than 23% in premarket trading on Tuesday after a report said HPE could announce a deal to acquire the networking hardware company for about $13 billion as soon as this week. Unity Software shares rose 2.4% after the company said it would lay off about 25% of its workforce, and Netflix shares fell about 2% after Citi downgraded it.
The yield on the benchmark 10-year Treasury rose more than 4 basis points and is trading above 4%.
These moves come after a strong trading session for stocks. The S&P 500 and Nasdaq Composite rose more than 1% and 2%, respectively, on Monday as the mega-cap tech stock rebounded from last week’s declines. Nvidia shares hit an all-time high, rising 6.4% during the session.
Even 30 in stock Dow ended the day up more than 200 points, or 0.6%. The index overcame a sharp decline Boeing shares following reports over the weekend that the company’s planes would be temporarily grounded.
Mega-cap tech stocks outperformed as investors bought the dip after last week’s selloff. Investors were afraid of big names such as Apple could be lagging behind their market leadership last year, but other traders expect the outlook for tech stocks to remain bright.
“The market is really trying to figure out how much of a cut we’re going to see this year, and we believe more stocks will hit all-time highs at the end of 2024,” said AJ Oden, global investment strategist at JPMorgan Private Bank. “The reason for that is we believe technology is going to have a pretty strong year, and that’s going to add to that tailwind that we’re seeing for stocks through the end of the year.”
Later this week, investors will analyze a pair of key inflation data to gain clarity on the Federal Reserve’s rate-cutting path next. The December consumer price index should be published on Thursday, followed by the producer price index on Friday.