US equity futures slipped as rising bond yields and a spike in oil unsettled
investors. Nasdaq 100 futures were down about 0.7% intraday, S&P 500 futures
fell 0.4%. Growth names were sold amid concern over the long end of the Treasury
market, while Brent crude extended Monday's gains. Stocks had rallied earlier
this month on renewed AI optimism and lower Fed rate-hike expectations but have
since retraced. A BofA fund manager survey showed global equity allocations at
their highest since Nov 2021, with 56% of respondents overweight stocks. Nasdaq
100 has largely recovered last month's pullback and the S&P 500 is near record
highs. Florian Ielpo, head of macro at Swiss Longao Asset Management, said: "The
hurdle rate for investment returns has risen again. This time it is a function
of oil, fiscal supply and the term premium, not a renewed acceleration in
short-rate expectations."
