U.S. stock futures kicked off the overnight session near the flat line Tuesday evening, following a drop in technology shares during the regular trading day.
Contracts on the S&P 500 were little changed. Nasdaq futures also drifted after the index dropped more than 1% during the regular trading day. Apple (AAPL) shares steadied following a decline earlier, which pulled the stock back after reaching a $3 trillion market capitalization for the first time ever at the start of the week.
In the first two trading days of the new year, investors have piled into cyclical areas of the market, with shares of companies seen as the biggest beneficiaries of a firming economic recovery and rising interest rates outperforming. The energy, financials and industrials sectors outperformed in the S&P 500 on Tuesday, and the Dow Jones Industrial Average composed heavily of cyclical stocks rose by more than 200 points to set an all-time closing high.
Treasury yields especially on the long end of the yield curve moved higher for another session on Tuesday, adding pressure to technology and growth stocks valued heavily on future earnings potential. The benchmark 10-year yield jumped further above 1.6% to reach its highest level since November, albeit while remaining low on a historical basis.