Nasdaq Futures Down 220 Pts; Treasury Yields Climb Ahead of Powell Testimony By Investing.com – Investing.com

Nasdaq Futures Down 220 Pts; Treasury Yields Climb Ahead of Powell Testimony By Investing.com – Investing.com

© Reuters

By Peter Nurse   

Investing.com - U.S. stocks are seen opening lower Tuesday, with the tech-heavy particularly hard hit by climbing Treasury yields.

At 7:05 AM ET (1105 GMT), the contract was down 140 points, or 0.4%, traded 35 points, or 0.8%, lower, while dropped 220 points, or 1.5%.

The benchmark has soared above 1.54%, climbing to its highest level since June, in the wake of last week’s Federal Reserve policy-setting meeting. This rise has increased the pressure on stock valuations, especially for those with poor short-term cash flow.

Fed chair Jerome Powell is set to warn later Tuesday, in a speech to the Senate Banking Committee, that the recent rise in inflation may last longer than anticipated.

“Inflation is elevated and will likely remain so in coming months before moderating,” Powell said, in his pre-released speech. “As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors.”

Also weighing on the market is the potential for a government shutdown as early as Friday if a funding plan isn’t agreed upon.

Economic data comes in the form of , which