US futures slide as Treasury yields surge to 14-month high
The 10-year yield hits 4.62% while Home Depot earnings miss sales estimates and Google’s cloud venture pressures competitors.
US stock futures pointed to a lower open on Tuesday, with the S&P 500, Nasdaq, and Dow Jones Industrial Average futures all declining. Futures tied to the benchmark S&P 500 and the tech-heavy Nasdaq were recently down 0.4% and 0.8% respectively, while Dow Jones Industrial Average futures slipped 0.3%. This pullback follows a sluggish start to the week, with the S&P 500 and Nasdaq closing lower on Monday as tech stocks slumped, although the Dow ended the day slightly higher.
The 10-year Treasury yield reached its highest level since February 2025, trading at 4.62%. The rise in yields is driven by inflation fears and central bank selling of US Treasuries, with several global central banks slashing their holdings of US debt. A Bank of America survey released on Monday indicated that more than 60% of fund managers see the 30-year Treasury yield likely hitting 6%, its highest level since 1999.
In corporate news, Home Depot reported first-quarter earnings that beat analyst estimates, with adjusted earnings of $3.43 per share on $41.77 billion in revenue. However, comparable store sales growth of 0.6% missed Wall Street expectations. Shares of the home improvement retailer were down 1% in premarket trading, having lost 13% of their value since the start of the year.
Alphabet is set to launch its annual Google I/O event, where new AI features are expected to be unveiled. Alphabet shares were up slightly before the bell at around $399, following a record close of $402.62 last Wednesday. Investor activity has been mixed, with Bill Ackman’s Pershing Square cutting its stake in the first quarter, while Berkshire Hathaway increased its holdings.
A new joint venture between Google and Blackstone, involving a $5 billion contribution from Blackstone to provide access to cloud computing via Google’s AI chips, has caused shares of competitors CoreWeave and Nebius Group to slip by approximately 4%. The Wall Street Journal reported that Blackstone will hold a majority stake in the new venture.
