US tech futures rise as lower bond yields soothe investors after the Nasdaq enters a technical correction

US tech futures rise as lower bond yields soothe investors after the Nasdaq enters a technical correction

US stock-index futures rose on Tuesday as bond yields eased, after a sharp sell-off in technology stocks put the Nasdaq into correction territory on Monday.

Futures for the tech-heavy Nasdaq 100 were up 1.65% in European trading, while S&P 500 futures were 0.75% higher. Dow Jones futures rose 0.37%.

Chinese stocks continued to suffer overnight, with the CSI 300 index dropping 2.15% despite government funds trying to counter the selling. Shares rose in Hong Kong and Japan.

In Europe, the continent-wide Stoxx 600 climbed 0.33% in morning trading, while the UK's FTSE 100 rose 0.34%.

US tech stocks took another battering Monday, with yields on government bonds continuing to rise as investors positioned for higher growth and inflation.

Rising bond yields have weighed on stock markets because they make shares look less attractive. Higher rates and inflation also eat into the value of companies' futures earnings, weighing particularly on fast-growing tech companies such as Tesla that are yet to make much in the way of profit.

The Nasdaq composite index slid 2.41% on Monday, taking its decline to more than 10% since recent highs and putting it in a so-called technical correction. The S&P 500 fell 0.54%.

The Dow Jones industrial average rose 0.97% as investors sold