10-year yield hits 3-month high
The Dow Jones Industrial Average futures lost 132 points, or 0.38%, while the S&P 500 futures and Nasdaq 100 futures were down 0.78% and 1.48%, respectively.
Powell is set to speak before the Senate Banking Committee and will say inflation is bigger and longer than expected and that the central bank will raise rates if necessary.
US Treasury sales continued, with the yield on the 10-year note rising 4 basis points to 1.53% and on track to close at a more than three-month high.
Among stocks, financials, which benefit from a steeper yield curve, outperformed.
Meanwhile, mega-cap technology stocks such as Apple Inc., Microsoft Inc. and Amazon Inc., lagged behind rising yields, are negative for growth names.
Ford Motor Company and Korean battery partner SK Innovation will invest $11.4 billion to build an electric F-150 assembly plant and three battery plants in the US in an effort to accelerate the automaker’s shift to electric vehicles.
Oil companies such as Cabot Oil & Gas Corp, Diamondback Energy Inc and Kinder Morgan Inc were higher as West Texas Intermediate crude jumped 73 cents to $76.18 a barrel.
There was a mixed trend in overseas markets.
European markets remained weak, with France’s CAC 30 down 1.77%, Germany’s DAX 40 down 1.31% and Britain’s FTSE 100 down 0.48%.
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In Asia, Japan’s Nikkei 225 slipped 0.19%, while China’s Shanghai Composite Index and Hong Kong’s Hang Seng Index jumped 0.54% and 1.2%, respectively.