Stock fell on Monday as interest rates continued to climb on concerns over tighter monetary policy from the Federal Reserve that could slow economic growth.
Futures tied to the S&P 500 fell 0.7%, and Nasdaq 100 futures slid 1.2%. Dow Jones Industrial Average futures dropped 129 points, or nearly 0.4%.
Those moves came as U.S. Treasury yields hit a new 3-year high overnight. On Sunday evening, the 10-year Treasury yield hit 2.7741%, or its highest point since early 2019. It topped 2.76% Monday morning to start the week. Yields move inversely to prices and 1 basis point is equal to 0.01%.
Twitter’s stock price fell in premarket trading Monday after CEO Parag Agrawal revealed that Elon Musk abandoned his plan to join the company’s board. Shares for the social media company dropped more than 8% before recovering some losses. At 7:56 a.m. ET, shares were down 2.4%.
The fight against inflation is likely to be a market driver this week. Investors will get a look at fresh data, with the consumer price index for March due out on Tuesday and the producer price index following on Wednesday.
Cleveland Fed President Loretta Mester told CBS’ “Face the Nation” on Sunday that she still believes the Fed can get inflation under control without causing major damage to the economy.