© Reuters. FILE PHOTO: Traders work on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 27, 2023. REUTERS/Andrew Kelly
(Reuters) – U.S. stock index futures slipped on Friday, with megacap growth companies under pressure after Treasury yields extended gains, while shares of Lyft plunged as the ride-hailing firm forecast current-quarter profit far below estimates.
Wall Street’s main stock indexes were set to clock declines at the end of a week dominated by hawkish commentary from U.S. Federal Reserve officials, as more than half of the companies on the wrap up quarterly earnings.
The eyed its first weekly fall this year, tracking declines of nearly 2%.
Yield on the benchmark 10-year Treasury note rose to its highest level in more than a month, last at 3.69%, up 2.9 basis points. U.S. stock indexes fell in the previous session as Treasury yields gained after an auction of 30-year bonds went poorly. [US/]
Rate-sensitive growth companies led declines in premarket trading on Friday, with Apple Inc (NASDAQ:), Amazon.com Inc (NASDAQ:), Microsoft Corp (NASDAQ:), Tesla (NASDAQ:) Inc and Alphabet (NASDAQ:) Inc down between 0.2% and 2.8%.
Rising Treasury yields put valuations of growth stocks under pressure, which was also a recurring theme for 2022.
Lyft Inc (NASDAQ:) plummeted 32.9% after it also lowered prices, raising concerns it was falling behind bigger rival Uber Technologies (NYSE:) Inc. Uber shares dropped 3.7%.
At 5:59 a.m. ET, were down 60 points, or 0.18%, were down 15 points, or 0.37%, and were down 97.75 points, or 0.79%.
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