Stock futures fall after Treasury yield rebound sparks sell-off: Live updates

Stock futures fell early Friday, pointing to an extension of the sharp pullback on Wall Street that put the major averages on pace for weekly declines.

S&P 500 futures traded 0.9% lower, while Nasdaq-100 futures fell 1%. Dow futures added 703 points, or 1.3%.

During Thursday’s session, the S&P 500 and Nasdaq Composite dropped 0.9% and 1%, respectively. That pullback left the S&P 500 down 1.9% for the week, and the Nasdaq off by 2.5% — putting them on pace to snap a three-week winning streak. The Dow Jones Industrial Average has fallen 1.8% week to date, on track for back-to-back weekly losses.

The downturn this week also impacted stocks beyond the U.S., with the MSCI All Country World Index on track for a weekly decline of 1.5% — its biggest drop in five weeks.

European stocks edged higher in early trade on Friday, after regional bourses and sectors opened in mixed territory.

The pan-European Stoxx 600 index was last seen 0.1% higher, while London’s FTSE 100 was flat and Germany’s DAX gained 0.2%.

In Asia, Japan’s Nikkei 225 closed 0.30% lower, while South Korea’s Kospi rose 0.88%. Australia’s benchmark S&P/ASX 200 fell 0.27%. Mainland China’s CSI 300 closed 0.57% higher.

Thursday’s losses came as long-dated U.S. Treasury yields resumed their march higher, after efforts by the government to stem the recent bond market rout failed to ease investor fears about inflation.

“Unlike QE via the [Federal Reserve], the Treasury cannot create money to fund asset purchases,” wrote Ulrike Hoffmann-Burchardi, chief investment officer of the Americas at UBS. “Any buybacks must be financed elsewhere, most likely through increased bill issuance or adjustments to other parts of its funding program.”

“In effect, the operation reshapes the maturity profile of debt held by investors rather than reducing the amount of debt markets must absorb. It neither removes the government’s financing needs nor resolves concerns about Treasury supply,” she wrote.

Ross Stores shares jumped more than 7% after hours on better-than-expected results for the second quarter.