Oil prices hold gains amid Russia supply risks; OPEC+ meeting looms
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* Futures down: Dow 0.59%, S&P 0.78%, Nasdaq 1.37%
By Devik Jain
Feb 22 (Reuters) - U.S. stock index futures slipped on
Monday as climbing Treasury yields and prospects of rising
inflation triggered caution over pricey equity valuations,
hitting shares of high-flying technology-related companies.
Shares of Apple Inc AAPL.O , Microsoft Corp MSFT.O ,
Facebook Inc FB.O , Alphabet Inc GOOGL.O , Tesla Inc TSLA.O ,
Netflix Inc NFLX.O and Amazon.com Inc AMZN.O resumed their
declines from the previous week, falling between 1% and 2.9% in
trading before the bell.
A largely upbeat fourth-quarter earnings had powered Wall
Street's main indexes to record highs earlier last week, but the
rally lost steam on fears of a potential snag in countrywide
inoculation efforts and inflation concerns rising from a raft of
stimulus measures.
Federal Reserve Chair Jerome Powell in his semi-annual
testimony before Congress this week is likely to reiterate a
commitment to keeping policy super easy for as long as needed to
drive inflation higher. The Dow .DJI closed almost flat for the week on Friday,
while the benchmark S&P 500 .SPX and the tech-heavy Nasdaq
.IXIC posted their first weekly declines this month.
Cyclical stocks have benefited recently from a rotation out
of technology-related shares on hopes that they stand to gain
from pent-up demand once the coronavirus pandemic is subdued.
Yields on 10-year Treasury notes have already reached 1.38%
US10YT=RR , above the psychological 1.30% level. MKTS/GLOB
At 6:53 a.m. ET, Dow e-minis 1YMcv1 were down 186 points,
or 0.59%, S&P 500 e-minis EScv1 were down 30.5 points, or
0.78%, and Nasdaq 100 e-minis NQcv1 were down 186.25 points,
or 1.37%.
Boeing Co BA.N dropped 3.9% after a United Airlines
UAL.O plane's engine shed debris over Denver on Saturday,
prompting the planemaker to urge airlines to suspend the use of
its 777 jets with Pratt & Whitney 4000 engines. Raytheon Technologies Corp RTX.N , which owns Pratt &
Whitney, also fell 2.9%.