After a sell-off by tech companies on Monday, stock futures were modestly up in overnight trading. This was because investors kept selling high-flying stocks in spite of rising rates.

Futures on Dow Jones Industrial Average rose 35 points. S&P 500 futures gained 0.1% and Nasdaq 100 futures rose 0.2%.

Monday’s Nasdaq Composite plunged 2.1%, marking its sixth negative day in seven. Technology heavyweights Alphabet (Amazon), Microsoft, Apple and Alphabet all dropped below 2%. Facebook shares lost 4.9%. The blue-chip Dow shed more than 300 points, while the S&P 500 lost 1.3%.

Seema Shah is Principal Global Investors’ Chief Strategist. She stated, “Investors are growing increasingly uneasy as acceleration economic activity and monetary stimulus give way slowing growth and steps to policy normalization.”

Investors fled highly-valued tech stocks after a recent rise in bond yields. Higher rates made their future profits less appealing. This is the The 10-year Treasury yield traded slightly up at 1.48% on Monday after hitting a high of 1.56% last week.

As investors feared inflation, slower growth and higher rates would keep them on edge, the market experienced a turbulent September. This is the S&P 500 fell 4.8% last month, posting its worst month since March 2020 and breaking a seven-month winning streak. Although the equity benchmark has fallen to 5.4% from its high in September, it still managed 14.5% growth year-to-date.

Washington lawmakers continue to try to reach an agreement to increase or suspend the U.S. borrowing cap and avoid a first default of the national debt. The Treasury Department last week warned that Congress must address the debt ceiling before Oct. 18Officials estimate that the U.S. will have exhausted all emergency measures to pay its bonds payments by this time.

Some believe that the outlook for equity markets is still strong despite the September weakness, as the economy recovers from the Covid crisis.

Marko Kolanovic (JPMorgan’s chief global market strategist), stated in a note that “we do not believe the current bout of de-risking is going to lead to sustained drops”