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Oct 9, 2018

Before The Bell: US futures drop as investors fret over higher interest rates I CNBC


Silvia Amaro


U.S. stock index futures were lower ahead of Tuesday's open.
Around 2:41 a.m. ET, Dow futures fell 62 points, indicating a lower open of -14.78 points. Futures on the S&P 500 were indicating a slightly downbeat open of -1.18 points, while Nasdaq futures signalled a slightly positive open of 2.68 points.
Equity markets are poised for a lower open as investors grapple with higher interest rates in the U.S. Economic data released last week showed an improvement in the health of the U.S. economy, which has pushed up expectations that the Fed will raise rates at a more rapid pace.
On Tuesday, the U.S. 10-year Treasury yield and 30-year Treasury yield rose to fresh multi-year highs. Higher yields and expectations of rising rates are a drag on stock markets, given that they cap companies' profits, thus restricting possible dividends to investors and higher pay for the employees.
On the data front, the calendar is quite thin with only the September NFIB Survey out at 6 a.m. ET.
Elsewhere, the New York Fed President John Williams is due to co-host a central banking forum in Bali, Indonesia, at 9.15 ET time.