Nasdaq 100 futures drop after major averages ended a two-day rally

Nasdaq 100 futures fell Wednesday night after rising Treasury yields ended a two-day rally to the major averages.

Futures linked to the Dow Jones Industrial Average were down 12 points, or 0.04%. S&P 500 futures are down 0.26%, while Nasdaq 100 futures are down 0.49%.

Tesla shares fell 4.5% in extended trading after the electric car maker Reported third-quarter revenue that came in below analysts’ expectations, although it outperformed the profits. Revenue came in at $21.45 billion, less than the $21.96 billion forecast by analysts polled by Refinitiv.

During a regular Wednesday session, the major averages Cut a two-day winning streak, although all three indicators remain on track for a positive week. The Dow Jones Industrial Average fell 99.99 points, or 0.33%. The Nasdaq Composite is down 0.85%, while the S&P 500 is down 0.67%.

Investors watched higher Treasury yields for signs of a recession even with a stronger-than-expected earnings season. On Wednesday, the yield on the benchmark 10-year Treasury note was trading at 4.136%, or its equivalent Highest level since July 2008.

“We are in this situation where the Federal Reserve is in control,” Brian Talkington, managing partner at Requisite Capital Management, said Wednesday on CNBC’s “Closing Bell: Overtime.” “The Fed is leading for two years, and as long as the two-year rally continues, we will not bottom in stocks, and the rally in stocks will not continue.”

Alaska Air Group, Freeport McMorran, Tractor Supply, American Airlines, Union Pacific, CSX, AT&T are due to report earnings Thursday.

On the economic front, the Philadelphia Fed Manufacturing Survey and weekly jobless claims data are expected on Thursday before the bell.

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