How are stock-index futures trading:
S&P 500 futures are down 0.1%.
Dow Jones Industrial Average futures are dipping 0.2%.
Nasdaq 100 futures are falling 0.1%.
On Tuesday, the Dow Jones Industrial Average fell 382 points, or 0.86%, to 43,911, the S&P 500 declined 17 points, or 0.29%, to 5,984, and the Nasdaq Composite dropped 17 points, or 0.09%, to 19,281.
Futures indicate a cautious start to equity trading on Wall Street as the post-election rally runs out of steam for the time being.
The S&P 500 is up 3.5% from the election day close, having dipped a fraction after holding above the 6,000 level for the first time on Monday.
The more muted tone early Wednesday follows a sharp surge in benchmark Treasury yields during the previous session, which took the 10-year yield to a four-month high and close to 4.5%.
“U.S. markets tapped on the brakes after a blistering post-election rally which propelled each of the main indices to record highs,” said Richard Hunter, head of markets at Interactive Investor.
“The return of the bond market after a holiday on Monday was another factor in top-slicing share prices, as Treasury yields continued a rise which has been in place since September,” Hunter added.
The increase in implied borrowing costs comes as investors express concerns that the incoming Trump administration’s tariff and tax-cutting policies may stoke inflationary pressures.
Any sign that inflationary pressures are building again and the chances of another 25 basis point rate cut by the Federal Reserve in December, currently priced at a 65.8%, may be reduced.
