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Oct 8, 2018

Before the bell Update: Dow futures fall 100 points amid fears of rising rates I CNBC.


Alexandra Gibbs


U.S. stock index futures fell ahead of Monday's open as investors fretted over a sharp rise in interest rates.
Around 8:30 a.m. ET, Dow Jones Industrial Average futures fell 105 points, indicating a decline of 72.05 points at the open. S&P 500 and Nasdaq 100 futures also fell to start off the week.

Michael Nagle | Bloomberg | Getty Images
Interest rates were on a tear last week after the release of several pieces of strong economic data. The benchmark 10-year Treasury note yield rose to above 3.2 percent from around 3.06 percent.
On Friday, the U.S. government said the unemployment rate in the U.S. fell last month to a level not seen in close to 50 years. Overall jobs creation disappointed for last month, but that was offset by sharp upward revisions for the number of jobs created in August and July.
U.S. Treasurys did not trade on Monday, however, as the bond market remained closed for Columbus day.
Investors also fretted over a decline in overseas stocks. Chinese stocks saw declines after the People's Bank of China (PBOC) announced measures on Sunday to cut the amount of cash that banks have to hold as reserves, with the reserve requirement ratios set to be slashed by 100 basis points, effective from next week. The news comes as the nation continues to battle with the U.S. over a tit-for-tat trade war, and is the fourth time the PBOC has slashed its reserve requirement ratio (RRR) in 2018.
The Shanghai Composite fell 3.7 percent overnight while Korean Kospi index pulled back 0.6 percent. In Europe, the Stoxx 600 index dropped 0.8 percent.