US futures drift lower; Nasdaq 100 down 0.7% amid energy and rate risks
US equity futures stayed muted Wednesday, with Nasdaq 100 contracts down 0.7% and S&P 500 and Dow contracts flat. Risks rose from US-Iran tanker reports and tight financial conditions; sovereign yields climbed.
US equity futures were muted on Wednesday, holding declines from the week as tight financial conditions threatened the outlook of economic activity.
Contracts for the S&P 500 and Dow were flat, while those for the Nasdaq 100 fell 0.7%.
US and Iran continued to exchange strikes against each other and reports of hits on tankers near the Strait of Hormuz maintained risks on global energy supply.
The inflationary impact of the war and a consequent rate hike by the Federal Reserve were magnified by soaring public deficits and higher corporate debt issuance, lifting sovereign yields across the curve.
The tech sector remained under pressure with Marvell, Palantir, and Seagate, dropping more than 2% premarket.
Also, Palo Alto Networks fell 2.5% despite beating earnings estimates.
On the other hand, Dell soared nearly 10% after beating its earnings and raising its full year revenue guidance.
Meanwhile, Nvidia was flat on advanced talks to acquire Hugging Face for $14 billion.