U.S. stock index futures were down premarket on Friday after a lackluster performance on Thursday. The major stock indices remained relatively unchanged, with the Dow Jones Industrial Average declining 0.3%, the S&P 500 falling 0.4%, and the Nasdaq Composite dipping 0.3%.
The tech sector was pressured by rising Treasury yields, which make bonds more attractive to investors relative to equities. The benchmark 10-year Treasury yield reached its highest level since early May, prompting a shift in investor capital away from tech stocks.
Higher yields can constrain spending on innovation and expansion, squeezing profit margins. Major tech giants closed mostly lower, with Apple and Alphabet shares declining, while NVIDIA and Tesla stock fell 0.2% and 1.8%, respectively.
Investors also reacted to the weekly jobless claims data, which saw a one-month low dip to 219,000 claims. However, the number of individuals receiving benefits after their first week of aid increased to 1.910 million, exceeding economists’ expectations. The mixed signals from the data support the Federal Reserve’s cautious approach to monetary policy.
In other news, the Treasury department held a seven-year note auction, which helped ease yields and provided a brief respite for investors.
