Futures contracts tied to the major U.S. stock fluctuated on Friday as popping interest rates alarmed equity investors and pushed the NASDAQ Composite to its worst session since October a day earlier.
Futures for the Dow Jones Industrial index withered 130 points, or 0.4%, to 31,241.
Futures for the S&P 500 lost five points, or 0.1%, at 3,823.
Futures for the NASDAQ Composite poked up 10 points, or 0.1%, to 12,841.75.
Popular big-tech stocks like Alphabet, Facebook and Tesla, all of which began the year on strong footing, dropped sharply on Thursday. Apple, one of the largest, cash-heavy companies in the world, has seen its stock slide more than 15% over the last month.
Tesla was down another 3% in pre-market trading Friday. Apple and Facebook were also lower in early trading.
Instead of tech, where companies tend to borrow more on average, investors are shifting money into so-called reopening trades, buying the stock of companies that would benefit most from the vaccine rollout and a return to regular travel and dining trends.
Energy has gained 6.8% this week alone, the biggest winner by far amid expectations that consumers around the world will soon be driving and flying as they were prior to the COVID-19 pandemic. Industrials and financials are the only two other sectors in the green week to date.
The S&P 500 is down 2% so far this week, while the NASDAQ has lost 5%. The Dow Industrials is own 0.3%.
Thursday, the S&P 500 lost 2.5% to clinch its worst day since Jan. 27 while the tech-heavy NASDAQ shed 3.5% and suffered its biggest one-day selloff since Oct. 28.
The momentum that carried stocks to all-time highs earlier this month has met resistance amid a sudden and pronounced rise in bond yields. The rate on the U.S. 10-year Treasury note briefly soared as high as 1.6% on Thursday before simmering back down to around 1.52%, its highest level since February 2020.
The 10-year yield, last seen around 1.48%, is up more than 50 basis points since the year began, a rapid rise for a bond rate used as a benchmark for mortgage rates and auto loans
Overseas, in Asia, stocks were punished. In Japan, the Nikkei 225 gave back 4%, while in Hong Kong, the Hang Seng index dropped 3.6%.
Oil prices dipped $1.34 to $62.19 U.S. a barrel.
Gold prices decreased $14.20 to $1,761.20 U.S.