Dow Futures Fall; PayPal, Robinhood Stocks in Focus — Live Updates

Stocks extended their losses early on Thursday, while bonds came under further pressure as a rise in US borrowing and weak earnings threaten this year’s rally in share prices.

Rising bond yields, spurred in part by the US credit downgrade, have weighed on stocks, adding to pressure from falling corporate profits. The selling has spread overseas, contributing to losses for stocks in Europe and Asia on Thursday.

Stocks face another test after the close when tech giants Amazon ( AMZN ) and Apple ( AAPL ) are set to report quarterly results.

The S&P 500 fell 0.5%, a day after the benchmark index posted its biggest loss since April. The tech-heavy Nasdaq Composite and Dow industrials also traded lower.

Government bond prices fell. The yield on 10-year Treasury notes rose to above 4.1%, after hitting 4.077% on Wednesday, the highest end-of-day level since November.

Overseas stocks mostly retreated. Britain’s FTSE 100 and Stoxx Europe 600 fell as stocks including semiconductor maker Infineon Technologies, airline Deutsche Lufthansa and London Stock Exchange Group fell on quarterly results. Asian markets were broadly lower, but shares in mainland China rose after survey data showed a pick-up in service activity.