Market Snapshot: U.S. stock futures mixed, with tech pointing to more losses as bond yields keep rising

The Nasdaq Composite Index 
COMP,
-1.26%
fell 1.3% to 15,854.76 for its biggest decline since Nov. 10, and retreating from an intraday record at 16,212.23, reached earlier in the day.

What’s driving the market?

Monday’s late-day paring for Wall Street came amid a sense by some investors that Fed Chair Powell — reappointed a second time by President Joe Biden — could tighten policy faster than Lael Brainard, who was appointed Vice Chair but had also been in the running for the top job.

Read: What a Fed led by Powell and Brainard means for Americans’ bank accounts

“Ultimately I don’t see how the Powell-led Fed is more hawkish today than it was last week, but we should always beware linear thinking: even the Fed can adapt and learn from the persistently high inflation,” said Neil Wilson, chief market analyst for Markets.com, in a note to clients.

“You never know, perhaps the Fed — and the White House — are starting to heed some warnings about what untethered inflation can do. In summary, you could say there has been a whiff of a hawkish tilt at the Fed in recent weeks and the administration is OK with that,” said Wilson.

The yield on the 10-year Treasury note
TMUBMUSD10Y,
1.655%
rose 2 basis points to 1.653%, after yields across the board rose at the fastest daily rate in nearly two weeks on Monday.

Trading volumes are expected to thin out as Thursday’s U.S. Thanksgiving Day holiday nears. Investors will get the IHS Markit flash manufacturing and services purchasing managers indexes for November at 9:45 a.m. Eastern Time.

U.S. markets will close Thursday and open a half-day on Friday in observance of the Thanksgiving Day.

Across other markets, oil prices pared losses after the White House announced a plan to release 50 million barrels of oil from the U.S. Strategic Petroleum Reserve, or SPR, in coordination with other countries. West Texas Intermediate crude
CL00,
+0.23%
was down 0.5% to $76/38 a barrel. Brent crude
BRN00,
+0.60%
was up 0.3% to $79.90 a barrel.

Markets are waiting to see if the Organization of the Petroleum Exporting Countries and its allies will rethink plans to boost production.

What companies are in focus?

• Shares of Zoom Video Communications
  ZM,
  -3.59%
  fell 8% in premarket trading after company executives detailed falling revenue on a conference call late Monday. That was after the company posted a forecast beating outlook, revenue and earnings.

• Abercrombie & Fitch shares dropped 6% in premarket. The retailer’s results beat forecasts as Chief Executive Fran Horowitz spoke of “ongoing supply chain constraints,” delivery delays and higher costs.

• Shares of XPeng Inc.
  XPEV,
  +1.07%
  rallied 4.2% after the China-based electric vehicle maker reported a wider-than-expected third-quarter loss, but revenue above forecasts and delivered an upbeat fourth-quarter outlook. 

• Dollar Tree
  DLTR,
  -1.78%
  shares fell 1.2% in premarket, after the retailer matched profit forecasts and topped expectations for sales, but saw falling gross margin and said it was moving to a $1.25 price point for all its stores.

How are other assets trading?

• The ICE U.S. Dollar Index  
  DXY,
  -0.06%,
   a measure of the currency against a basket of six major rivals, was up 0.5%.

• The Stoxx Europe 600 
  SXXP,
  -0.87%
  slipped 0.7%, while London’s FTSE 100 index
  UKX,
  +0.13%
  was flat.

• In Asia, the Shanghai Composite 
  SHCOMP,
  +0.20%
   finished up 0.1%, while the Hang Seng Index 
  HSI,
  -1.20%
   fell 1.2% in Hong Kong. China’s CSI 300  
  000300,
  +0.02%
  was flat and Japan’s Nikkei 225 
  NIK,
  +0.09%
  was closed for a holiday.