Futures edge lower as yields rise amid easing bank contagion fears

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 2.2% gain after a 12% rally on Monday.