US Stock Futures Fall Ahead Of Fed Chair’s Testimony

US Stock Futures Fall Ahead Of Fed Chair’s Testimony

23 Feb 2021 06:13 PM

U.S. stock futures fell as investors anticipated Federal Reserve Chairman Jerome Powell's testimony in Congress on economic outlook.

S&P 500 futures dropped 0.1% and the Nasdaq-100 fell 0.6%, suggesting that the indexes will open lower.

Surge in US Treasury yields has hampered market participant’s appetite for riskier assets like equities. Technology shares are most vulnerable as their valuations are related to their future earnings potential which in today's terms are less valuable when investors apply a higher discount rate.

10-year Treasury yield ticked up to 1.376%, compared to 1.370% in the previous session.

This surge in yields has made investors keen on Chairman Powell's semiannual report on the economy and monetary policy to Congress later today where he is expected to reassert that loose monetary policies will remain in place.

Home Depot and Macy's are due to report their earnings, followed by Square and McAfee.