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Inventory futures subdued after a technology-driven sell-off on Wall Road

Stock futures were subdued in overnight trading on Monday after a technology-driven sell-off as investors continued to sell soaring stocks amid rising interest rates.

Futures on the Dow Jones Industrial Average slipped 30 points. S&P 500 futures were little changed, while Nasdaq 100 futures traded in slightly positive territory.

On Monday, the Nasdaq Composite lost its sixth negative day of seven down 2.1% as tech heavyweights Apple, Alphabet, Amazon and Microsoft all fell at least 2%. Facebook shares plummeted 4.9%. The blue chip Dow lost more than 300 points while the S&P 500 lost 1.3%.

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"Investors have become increasingly unsettled as the acceleration of economic activity and monetary stimulus give way to a slowdown in growth and moves to normalize politics," said Seema Shah, chief strategist at Principal Global Investors.

A recent surge in bond yields has caused investors to flee highly valued tech stocks as higher interest rates make their future earnings less attractive. The 10-year government bond yield rose slightly to 1.48% on Monday after hitting a high of 1.56% last week.

The market had a tumultuous September as fears of inflation, slower growth and rising interest rates kept investors nervous. The S&P 500 fell 4.8% last month, seeing its worst month since March 2020, breaking a seven-month winning streak. The equity benchmark is now 5.4% below its all-time high reached at the beginning of September, but has still gained 14.5% over the year to date.

In Washington, lawmakers are still trying to approve an increase or suspension of the US credit limit and avert a dangerous first bad debt default. The Treasury Department warned last week that lawmakers must hit the debt ceiling before October 18 if officials estimate the US will exhaust emergency efforts to meet its bond payments.

However, some believe the outlook for equities will remain robust after weak September as the economy continues to recover from the Covid crisis.

"We do not believe the recent de-risking will result in sustained declines and we stand by our stance to continue to buy into any weakness," said Marko Kolanovic, chief strategist for global markets at JPMorgan, in a press release.

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