Stock futures were slightly lower on Wednesday morning after the major averages added to weeks of losses amid a surge in bond yields.
Futures tied for the Dow Jones industrial average were 115 points lower. S&P 500 futures were down 0.37% and Nasdaq 100 futures were down 0.31%.
Shares added to a three-week slide in regular trading. The Dow fell 173 points, or 0.5%, and the S&P 500 fell 0.4%. The Nasdaq Composite fell 0.7% to its first seven-day loss since 2016.
The moves came amid a surge in bond yields that saw the 10-year U.S. Treasury yield rise to its highest level since June. The rate on the 30-year Treasury closed at its highest level since 2014. Bond yields move inversely with prices.
Investors are divided on how to approach the market in the week after Labor Day in September, a notorious month for stocks. All eyes are on the S&P 500 at 3,900. Some see the index falling to new lows, while others are optimistic of a year-end rally.
“It’s a battleground,” Cameron Dawson, chief investment officer at NewEdge Wealth, told CNBC.CLOSING BELL: Overtime.” “It was opposition and support, and any time you have a convergence of opposition and support in these places, we’re going to see a lot of fighting to see where we push above or below that.”
“If we have 3,900, that’s a good signal,” he added. “That means the market is sniffing some change in liquidity, willing to put higher multiples on things on a consistent basis… If we don’t, that 3,600 will play out in short order.”
On Wednesday, the Federal Reserve will provide its summary of current economic conditions Brown book. Elsewhere, Fed Chairs Loretta Meister of Cleveland and Tom Parkin of Richmond and Fed Vice President Lael Brainard are scheduled to speak at various events.
“Communicator. Music aficionado. Certified bacon trailblazer. Travel advocate. Subtly charming social media fanatic.”