Equity futures were slightly lower on Wednesday morning after major averages added weeks of losses amid a jump in bond yields.
Dow Jones Industrial Average futures were 115 points lower. S&P 500 futures were down slightly by 0.37% and Nasdaq 100 futures were also down 0.31%.
Shares added to their three-week slide in regular trading. The Dow Jones fell about 173 points or 0.5%, and the S&P 500 slipped 0.4%. The Nasdaq Composite fell 0.7% to record its first seven-day losing streak since 2016.
The moves came amid a surge in bond yields that saw the 10-year US Treasury yield hit its highest level since June. The 30-year Treasury rate closed at its highest level since 2014. Bond yields move inversely to prices.
Investors are divided on how to approach the market as they enter the first post-Labor Day week in September, a notoriously cruel month for stocks. All eyes are on the 3,900 level of the S&P 500. Some see the index falling to even lower lows, while others are bullish on a year-end rally.
“This is the battleground,” Cameron Dawson, chief investment officer of NewEdge Wealth, said on CNBC’s “Closing Bell: Overtime.” “It was resistance and support, and anytime you have those spots where you have a lot of resistance and support consolidation, we’re going to see a lot of fighting to see where we push above or below.”
“If we hold 3,900, that’s a bullish signal,” she added. “That means the market is sensing a change in liquidity, ready to put a higher multiple on things sustainably… If we don’t, then that 3,600 will be in play in the near term.”
On Wednesday, the Federal Reserve will deliver its summary of current economic conditions, also known as the Beige Book. Elsewhere, Fed Chairs Loretta Mester of Cleveland and Tom Barkin of Richmond, as well as Fed Vice Chair Lael Brainard, are expected to speak at various events.