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Apple down 2.3% on move to drop iPhone production boost
U.S. 10-yr Treasury yields eases from 12-year highs
Biogen soars on landmark Alzheimer's data
Futures up: Dow 0.57%, S&P 0.44%, Nasdaq 0.08%
Sept 28 (Reuters) - The Dow and S&P 500 were set to open
higher on Wednesday as easing Treasury yields gently lifted
rate-sensitive growth stocks, but the gains were capped by
losses in Apple Inc after it dropped plans to boost iPhone
Futures shed early losses, gaining confidence from a Bank of
England decision to restore financial stability by buying as
many long-dated government bonds as needed. The move lifted
British bond prices and pushed global benchmark yields lower.
The yield on the U.S. 10-year Treasury bill
came off 12-year highs to hit the day's low of 3.886%, while
Germany's 10-year government bond yield, the
benchmark for the euro zone, fell after touching a 11-year high.
"Yields now are approaching the Fed's desired target level
of 4 and 4.5%. So once that happens, we should see yields
beginning to level off and that should boost equity prices,"
said Peter Cardillo, chief market economist, Spartan Capital
Rate-sensitive megacap growth names such as Amazon.com Inc
, Microsoft Corp, Meta Platforms Inc
and Tesla Inc edged higher 0.2% and 0.3%.
Later in the day, investors will also pay attention to
comments from a slew of Fed officials, including Fed Chair
Meanwhile, shares of the world's most valuable public
company fell 2.3% in premarket trading after Bloomberg
reported that Apple told suppliers to curtail efforts to
increase assembly of its iPhone 14 products by as many as 6
million units in the second half of this year.
"Apple has got so many pieces and any weakness in Apple
demand has big knock-on impacts on many spaces, so chips,
processing and the outlook for retail sales even," said Patrick
Armstrong, chief investment officer at Plurimi Wealth.
Chipmakers Advanced Micro Devices, Qualcomm Inc
Nvidia Corp and Micron Tech were down
between 0.3% and 1.9%.
Apple's production cut added fuel to investors worried about
the U.S. Federal Reserve's push to aggressively increase
borrowing costs to tame stubbornly high inflation even at the
risk of slowing down economic growth.
At 8:46 a.m. ET, Dow e-minis were up 167 points, or
0.57%, S&P 500 e-minis were up 16 points, or 0.44%, and
Nasdaq 100 e-minis were up 9.25 points, or 0.08%.
In the previous session, Wall Street's main indexes sank
deeper into a bear market, with the S&P 500 recording its lowest
close in almost two years on rate hike worries.
Bucking the overall slide, Biogen surged 50.4%
after its Alzheimer's drug, developed with Japanese partner
Eisai, succeeded in slowing cognitive decline.
Shares of Eli Lilly & Co, which is also developing
an Alzheimer's drug, rose 8%.
(Reporting by Shreyashi Sanyal, Susan Mathew and Ankika Biswas
in Bengaluru; Editing by Vinay Dwivedi and Arun Koyyur)