U.S. equity futures and global markets drifted without direction on Wednesday as the rally in tech shares stalled and U.S. bond yields ticked higher ahead of a critical 10Y bond auction while investors nervously awaited a reading on inflation later in the day amid fears that the economy could potentially overheat. As Reuters puts it, “it all seemed a bit subdued” after Tuesday’s roaring 20% surge in electric car doyen Tesla, 4% jump in the Nasdaq and biggest one-day gain for global heavyweights Amazon and Microsoft in well over a month.
At 6:31 a.m. ET, Dow E-minis were up 110 points, or 0.34%, S&P 500 E-minis were up 3.50 points, or 0.09% and Nasdaq 100 E-minis were down 15 points, or 0.12% as Tesla dropped about 1.5%, while Apple Inc, Amazon.com Inc, Facebook Inc and Microsoft Corp fell between 0.2% and 0.7% in early trading. General Electric rose as much as 3.7% in pre-market trading after agreeing to combine its jet-leasing business with rival AerCap Holdings NV. The Nasdaq dipped after logging its best one-day percentage jump in four months on Tuesday, helped by a near 20% jump in Tesla shares as investors picked up momentum stocks that had recently taken a beating due to higher yields.