Stock market news live updates: Stock futures trade flat after Nasdaq's worst day since October

Stock futures steadied on Thursday after a selloff during the regular trading day.

Load Error

Contracts on the Dow, Nasdaq and S&P 500 hugged the flat line. Earlier, the Nasdaq dropped 3.5% for its worst session since October as tech stocks renewed their declines. The S&P 500 sank by 2.5% for its worst day in a month. And the Dow pulled back by more than 1.5% to retreat from its record high from earlier this week.

and said the outlook this year was “highly uncertain” as in-person restaurants begin to reopen.Shares of Airbnb (ABNB) rose more than 1% in late trading after the company reported better-than-expected sales in the fourth quarter, despite ongoing pressure to the travel industry because of the coronavirus pandemic. But shares of DoorDash (DASH), another newly public company that debuted earnings results after market close, sank more than 11%, after the food delivery company posted widening net losses

A rapid rise in Treasury yields deterred investors from risk assets, as the specter of rising borrowing costs for companies and a jump in inflationary pressures mounted. The yield on the benchmark 10-year note jumped to a fresh one-year high of as much as 1.6% on Thursday before cutting some gains.

“Driving rates higher has been a combination of higher growth expectations as well as higher inflation expectations. Until recently, market participants have been able to digest the upward drift in long-term rates, but it appears that the next leg up in interest rates is a bigger bite to chew,” Charlie Ripley, senior investment strategist for Allianz Investment Management, told Yahoo Finance in an email. “Looking at where real yields were at, they were simply too low when considering growth expectations, and it’s likely that long-term real yields will continue to drift higher as economic data improves.”

Other strategists echoed this sentiment, and noted that markets’ fears over a higher-rate environment may be overblown.

“Don’t fear rising rates. The last 16 rising rate environments, the markets rallied in 13 of those environments,” Eric Diton, managing director of The Wealth Alliance, told Yahoo Finance. “So rising rates are simply reflecting the fact that the economy is recovering, vaccinations are working. This is good news. And quite frankly half a percent on a 10-year Treasury was ridiculous, it was a joke. And 1.5% is much more realistic.”

6:25 p.m. ET Thursday: Stock futures trade flat to slightly lower

Here’s where markets were trading as the overnight session began:

  • S&P 500 futures (ES=F): 3,823.00, down 5 points or 0.13%

  • Dow futures (YM=F): 31,345.00, down 26 points or 0.08%

  • Nasdaq futures (NQ=F): 12,812.25, down 19.5 points or 0.15%

© Provided by Yahoo! Finance

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

Read more from Emily:

Continue Reading