*
Futures down: Dow 0.10%, S&P 0.17%, Nasdaq 0.22%
(Updates prices; comments)
By Shubham Batra and Amruta Khandekar
March 28 (Reuters) - U.S. stock index futures slipped on
Tuesday as Treasury yields rose amid easing worries about a
banking crisis following First Citizens BancShares' U.S.
regulator-backed deal for failed Silicon Valley Bank.
Benchmark 10-year yields rose to 3.545%,
weighing on growth stocks such as Apple Inc , Meta
Platforms and Alphabet Inc in premarket
trade.
Shares of First Citizens BancShares Inc fell 1% in
premarket trading after surging more than 50% on Monday
following its deal to acquire the deposits and loans of failed
Silicon Valley Bank.
The S&P 500 and Dow Jones Industrial Average rose on Monday after the deal was announced, while the Nasdaq
Composite closed lower, led by a decline in
technology-related stocks.
Big U.S. banks including JP Morgan Chase & Co , Bank
of America and Citigroup were up between 0.1% and
0.5% on Tuesday. Regional banks also rose, led by First Republic
Bank's 2.2% gain after a 12% rally on Monday.
"It’s all about confidence right now – and anything which
reassures shareholders, creditors and depositors that their
money is safe with the banks is one step further away from the
carnage which claimed SVB and Credit Suisse," said AJ Bell's
investment director Russ Mould.
"Whether a more cautious approach to lending by the industry
might do some of the work for central banks is something they
are all likely to be monitoring closely in the coming weeks."
Later in the day, Fed Vice Chair for Supervision Michael
Barr will testify before the Senate Committee on Banking,
Housing and Urban Affairs on "bank oversight" in the first of
several hearings on the collapse of Silicon Valley Bank and
Signature Bank.
Money market bets are now equally split between the Fed
raising rates by 25 basis points and pausing in its policy
meeting in May, after being largely tilted towards a no-hike
scenario at the end of last week, according to CME's Fedwatch
tool. Investors expect a sharp easing in rates thereafter.
At 6:56 a.m. ET, Dow e-minis were down 31 points,
or 0.1%, S&P 500 e-minis were down 6.75 points, or
0.17%, and Nasdaq 100 e-minis were down 27.75 points, or
0.22%.
Alibaba Group Holding climbed 6.8% after the firm
said it plans to split its business into six main units covering
e-commerce, media and the cloud.
Shares of Lyft Inc were up 7.1% premarket after the ride-hailing firm hired former Amazon.com executive David Risher as its new chief. Virgin Orbit Holdings was down 14.6% after the cash-strapped company said it would extend an unpaid furlough for most of its employees as talks seeking new funding continue.
Walgreens Boots Alliance Inc shares added 2.1%
premarket after the company's quarterly profit beat Wall Street
expectations.
The Conference Board will release consumer confidence data
later in the day, which is expected to show prevailing business
conditions marginally deteriorated last month.
(Reporting by Shubham Batra and Amruta Khandekar in Bengaluru;
Editing by Savio D'Souza)
