U.S. stock futures fall as 10-year Treasury yield hits 5%

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U.S. stock futures fall as 10-year Treasury yield hits 5%
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Barbara Kollmeyer is based in Madrid, where she leads MarketWatch's pre-markets coverage of financial markets and writes the Need to Know column. She has worked in London and Los Angeles for MarketWatch previously. Follow her on Twitter @bkollmeyer.

U.S. stock futures pointed to a cautious start on Monday, on the heels of a rough week for equities, as the 10-year Treasury yield hit the psychologically important level of 5%.How stock futures are trading On Friday, The Dow Jones Industrial Average DJIA fell 286.89 points, or 0.9%, to close at 33,127.28.The S&P 500 SPX shed 53.84 points, or 1.3%, to finish at 4,224.16. The Nasdaq Composite COMP dropped 202.37 points, or 1.5%, to end at 12,983.81.

Last week saw all three major benchmarks record their largest percentage drops since the week ended Sept. 22, with the Nasdaq sinking 3.2% and the S&P 500 dropping 2.4%, pressured by the bond yield climb and worries about an expanding Israel-Hamas war. On the earnings front, an important batch of results are rolling out this week that could determine the course of the remaining third-quarter earnings season, with Microsoft Corp. MSFT, -1.40% and Google parent Alphabet Inc. GOOGL, -1.56% reporting Tuesday, Meta Platforms Inc. META, -1.33% reporting Wednesday and Amazon.com Inc. AMZN, -2.52% on Thursday. Market optimism has wavered followed mixed bank earnings.

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