US STOCKS-Nasdaq futures down 1% as bond yields extend rally
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Sept 28 (Reuters) - Nasdaq futures fell more than 1% on Tuesday as technology heavyweights came under pressure from a surge in bond yields, which have been lifted by expectations of higher interest rates following recent comments from the Federal Reserve.
The two-year U.S. Treasury yield surged to 18-month highs, weighing on shares of high-growth companies whose values rest heavily on future earnings.
Facebook Inc, Amazon.com Inc, Apple , Tesla Inc and Google-parent Alphabet Inc dropped 1.2% to 1.5% in early premarket trading.
The Nasdaq Composite index shed 1% on Monday, as investors rotated from technology stocks to economically sensitive sectors of the market such as financials and energy.
The higher prices and hiring difficulties seen as the U.S. economy reopens from the pandemic could prove "more enduring than anticipated," Federal Reserve Chairman Jerome Powell said in prepared remarks ahead of his hearing before the U.S. Senate Banking Committee.
A host of other Fed officials including St. Louis Fed President James Bullard, Fed Bank of Chicago President Charles Evans and Fed Bank of Atlanta President Raphael Bostic are also slated to speak later in the day at separate events.
At 05:05 a.m. ET, Dow e-minis were down 105 points, or 0.3%, S&P 500 e-minis fell 0.7% and Nasdaq 100 E-minis lost 202.75 points, or 1.33%. (Reporting by Sruthi Shankar and Medha Singh in Bengaluru; Editing by Subhranshu Sahu)
