US Stock Futures Drop as High Yields Sour Mood – Europe Market Wrap

US equities were poised to fall more as Treasury rates approached their highest level this year, raising concerns about tight monetary policy.

S&P 500 futures declined 0.5%, indicating a second day of falls. Salesforce fell 17% in premarket trade amid sluggish sales growth. Telecom and financial stocks led the rally in Europe’s Stoxx 600 index. Ten-year Treasury rates have stabilised after rising roughly 15 basis points in the last two days.

Global markets are poised for their worst week since mid-April, as US rate-cut hopes fade and inflation remains stubborn. Another weak US auction result on Wednesday raised concerns that paying the US deficit will push up rates at a time when the Fed is in no hurry to loosen policy.