(C) Reuters. FILE PHOTO: A view of the exterior of the Nasdaq market site in the Manhattan borough of New York City
(Reuters) – Futures tracking the Nasdaq index sank 2% on Monday as the passage of a $1.9 trillion COVID-19 relief package by the U.S. Senate lifted bond yields, sparked inflation concerns and pressured richly valued technology stocks.
Wall Street’s main indexes had staged a late-session rally on Friday as a much better-than-expected jobs report boosted optimism around a faster economic rebound, but market sentiment soured on Monday on fears that rising inflation would result in a sudden tapering of monetary stimulus.
Inflation worries were also fueled by a jump in Brent crude prices to above $70 per barrel, the highest since the COVID-19 pandemic began, following reports of attacks on Saudi Arabian facilities. [O/R]
The yields on benchmark 10-year Treasuries stood near a 13-month high at 1.594%, while Wall Street’s fear gauge jumped nearly 3 points and was on course for its biggest one-day rise this month.
Nasdaq futures slide 2% on inflation jitters
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