By Bansari Mayur Camdar

(Reuters] – U.S. Stock Index Futures lost their first week of 2013 and were subdued Monday. However, big banks continued to gain as U.S. Treasury Yields climbed to a new high for the second year.

Early trading saw the benchmark rise to 1.80%, a level it last reached in early 2020. The benchmark also increased 25 basis points last Wednesday in its largest move since late 2019, which was a remarkable feat.

Big banks like JPMorgan Chase & Co (NYSE:), Goldman Sachs (NYSE:), Bank of America Corp (NYSE:), Morgan Stanley (NYSE: Citigroup Inc (NYSE: ) saw a 0.3% to 0.8% increase in premarket trading.

Megacap growth companies include Apple Inc (NASDAQ) and Amazon.com Inc. Microsoft Corp (NASDAQ:), Meta Platforms Inc, Tesla (NASDAQ) Inc all fell between 0.2% to 1.1%

Tesla lead the declines in shares with 1.1% fall after Elon Musk, Chief Executive Officer of Tesla Motors Inc. tweeted that Tesla will increase the price for its advanced driver assist software.

In the opening week of 2022, many technology and growth stock fell as investors started to rebalance their portfolios in preparation for an increasingly hawkish Federal Reserve. Meanwhile, the banking sector saw 9.4% increase last week due to the rallying Treasury yields on rates hike expectations.

Investors are waiting for inflation data this week to see if it has any impact on producer and consumer prices. Also, this will determine the course of U.S. central banking’s anticipated interest rate rises this year.

The market expects a higher than 70% probability of an increase in interest rates to 0.255% by March, and at least two additional hikes before year’s end. [FEDWATCH]

Goldman Sachs expects that the Fed will raise rates by four times in 2022 as opposed to the three previously forecasted.

At 6:53 AM. ET was up 1 point or 0%. They were down 5points or 0.11% and down 49.75points or 0.32%.

Sportwear giant Nike (NYSE:) dropped 1.4% following HSBC’s downgrading of the stock from “hold” to “hold”, along with its peer Adidas (OTC) because of persistent supply chain problems.