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Stock Futures Waver After Dow Record


U.S. stock futures edged lower Thursday ahead of fresh data on economic growth, jobless claims and the manufacturing sector, which will offer fresh insights into the pace of recovery.

Futures linked to the S&P 500 ticked down 0.4%. Nasdaq-100 futures retreated almost 1%, suggesting sharp declines in technology stocks after the opening bell.

Contracts tied to the Dow Jones Industrial Average wavered between gains and losses, suggesting that the blue-chips index may be muted after closing Wednesday at an all-time high.

Investors’ appetite for risky assets rebounded on Federal Reserve Chairman Jerome Powell’s comments this week that the central bank will keep interest rates low for a while. Still, the recent sharp rise in bond yields—which closed Wednesday at their highest level in a year—has been making some money managers more cautious. Those investors are weighing shifting funds into less risky assets, such as bonds, and into stocks with lower valuations than technology companies.

“The market is jittery. The bond yields’ rising is putting equities, especially growth stocks, under pressure,” said Sebastien Galy, a macro strategist at Nordea Asset Management. “There is a bit of a risk reduction broadly,” he added.

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