Futures point to gains for tech-related stocks as bond yields ease By Reuters

By Medha Singh

(Reuters) – Futures tracking the and the Nasdaq rose on Monday, with heavyweight technology stocks set to rebound after a surge in bond yields in recent weeks sparked a flight from richly valued equities.

A sharp run up in Treasury yields since mid-February has dictated the course of equities trading, while weighing on high-growth tech stocks, whose valuations look stretched.

Futures tied to the tech-heavy climbed about 0.9% to start the week. The index is still down more than 6% from its Feb. 12 record closing high.

The S&P 500 and the Dow, however, clinched all-time highs as early as last week on bets that stimulus and vaccine rollouts would lead to a strong rebound in the U.S. economy.

Kansas City Southern (NYSE:) jumped about 17% after Canadian Pacific (NYSE:) Railway Ltd agreed to acquire the railroad operator in a $25 billion cash-and-stock deal to create the first railway spanning the United States, Mexico and Canada.

At 06:34 a.m. ET, Dow E-minis were down 79 points, or 0.24%, S&P 500 E-minis were up 1.75 points, or 0.04% and Nasdaq 100 E-minis were up 106.75 points, or 0.83%.

Intel Corp (NASDAQ:), Microsoft Corp (NASDAQ:) and Apple Inc (NASDAQ:) led gains among Dow components in trading before the bell.

Big U.S. lenders including Goldman Sachs (NYSE:), Citigroup (NYSE:) and Bank of America (NYSE:), which have enjoyed a rally on brightening economic prospects, slipped about 1% each.

The iShares MSCI Turkey ETF sank about 19% as President Tayyip Erdogan’s decision to oust a hawkish central bank governor sparked fears of a reversal of recent rate hikes.