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* Futures down: Dow 0.6%, S&P 0.4%, Nasdaq 0.7%
By Devik Jain and Medha Singh
Feb 26 (Reuters) - U.S. stock index futures retreated on
Friday as lofty tech stocks bled further amid elevated U.S. bond
yields and prospects of a spike in inflation.
Shares of Apple Inc AAPL.O , Amazon.com Inc AMZN.O ,
Microsoft Corp MSFT.O , Alphabet Inc GOOGL.O , Facebook Inc
FB.O and Netflix Inc NFLX.O were down between 0.6% and 0.9%
before the bell.
The S&P 500 and the Nasdaq were knocked off their all-time
highs last week after a sharp rise in U.S. Treasury yields
triggered profit taking in some of the mega-cap technology
stocks.
"Higher yields and steeper curves tend to be good for
financials but less so for tech," said Karen Ward, chief market
strategist EMEA at J.P. Morgan Asset Management.
"These sectoral shifts will also likely dictate other
rotations such as from growth towards value."
The Dow is poised for its best month since November 2020 as
investors bought into cyclical companies set to benefit from an
economic reopening, while the Nasdaq remains on track to wipe
out nearly all of its gains for the month.
At 06:50 a.m. ET, Dow E-minis 1YMcv1 were down 183 points,
or 0.58%, S&P 500 E-minis EScv1 were down 16.75 points, or
0.44%, and Nasdaq 100 E-minis NQcv1 were down 96.5 points, or
0.75%.
Data on U.S. personal consumption, which includes one of the
Federal Reserve's favored inflation measures, is expected to
show core inflation dipped to 1.4% in January, which could help
calm market worries.
Stimulus will be back in focus as the Democratic-controlled
U.S. House of Representatives aims to pass President Joe Biden's
$1.9 trillion coronavirus aid bill on Friday in what would be
the first major legislative victory of his presidency.
GameStop Corp GME.N jumped 10% premarket as retail
investors pushed up the stock in a renewed rally that could see
it clock its second best week. Salesforce.com Inc CRM.N slipped about 3% as the online
software company forecast full-year profit below market
expectations.