This post was originally published on this site
https://i-invdn-com.investing.com/trkd-images/LYNXMPEJ1K0G2_L.jpg
The No. 1 U.S. home improvement chain dropped 3.8% in premarket trading after its fourth-quarter comparable sales fell short of estimates on higher supply-chain costs and weak demand due to inflation.
Investors will be focusing on retail giant Walmart (NYSE:WMT) Inc’s results due later in the day.
At 6:34 a.m. ET, Dow e-minis were down 264 points, or 0.78%, S&P 500 e-minis were down 30.75 points, or 0.75%, and Nasdaq 100 e-minis were down 110.25 points, or 0.89%.
The U.S. stock market got a lift this year from its worst annual showing in more than a decade in 2022, as investors were hopeful that the central bank’s rate hiking cycle was nearing its end.
However, recent economic data points to a resilient economy with inflation far from the Fed’s 2% target, raising bets for two or three more 25 basis point hikes and lower chances of rate cuts at year-end.
Money market participants see the benchmark level peaking to a 5.3% in July, and staying near those levels throughout the year.
Yield on the U.S. benchmark 10-year Treasury note edged higher, in turn pressuring rate-sensitive growth stocks.
Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT) and Google-parent Alphabet (NASDAQ:GOOGL) Inc fell between 1% and 1.4% in premarket trading as yield on the benchmark 10-year Treasury note climbed.
Traders find government bonds as a safe alternative to investments in riskier assets like megacap firms.
In a bright spot, Meta Platforms Inc (NASDAQ:META) added 2.0% after the Facebook parent said it is testing a monthly subscription service called Meta Verified, which will let users verify their accounts using a government ID and get a blue badge.
