Nasdaq 100 futures fall after major averages end two-day rally

Traders on the floor of the NYSE, September 14, 2022.

Source: NYSE

Nasdaq 100 futures fell late Wednesday after soaring Treasury yields ended a two-day rally for major averages.

Futures contracts linked to the Dow Jones Industrial Average fell 12 points, or 0.04%. S&P 500 futures fell 0.26%, while Nasdaq 100 futures fell 0.49%.

Tesla shares fell 4.5% in extended trading after the electric vehicle maker reported third-quarter revenue below analysts’ expectations, although it beat on profits. Revenue hit $21.45 billion, lower than the $21.96 billion forecast by analysts polled by Refinitiv.

During Wednesday’s ordinary session, the large averages snapped a two-day winning streak, although all three indices remain on track for a positive week. The Dow fell 99.99 points, or 0.33%. The Nasdaq Composite fell 0.85%, while the S&P 500 slipped 0.67%.

Investors have been watching rising Treasury yields for signals of recession, even with a stronger-than-expected earnings season underway. On Wednesday, the yield on the benchmark 10-year Treasury note traded as high as 4.136%, its highest level since July 2008.

“We’re in this position where the Fed is in control,” Bryn Talkington, managing partner of Requisite Capital Management, said on CNBC’s “Closing Bell: Overtime” on Wednesday. “The 2-year is leading the Fed, and as long as the 2-year continues to rise, we won’t bottom out in stocks, and the rally in stocks won’t continue.”

Alaska Air Group, Freeport-McMoRan, Tractor Supply, American Airlines, Union Pacific, CSX, AT&T are expected to report results Thursday.

On the economic front, the Philadelphia Fed’s manufacturing survey and weekly jobless claims data are due Thursday before the bell.

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