The major U.S. index futures are currently pointing to a lower open on Monday, with stocks likely to see further downside following the sharp pullback seen last Friday.

Concerns about a recent increase by U.S. treasury yields may weigh on Wall Street, as the yield on the benchmark ten-year note closed above 4.6 percent for the first time since late May on Friday.

Treasury yields have surged in recent weeks due in part to the Federal Reserve forecasting fewer than previously estimated interest rate cuts in 2025.

The increase by treasury yields may also reflect worries about the impact President-elect Donald Trump’s policies will have on the U.S. budget deficit.

A slump by shares of Boeing (NYSE:BA) is also likely to weigh on the Dow after South Korea’s Transport Ministry ordered an inspection of B737-800 aircraft after the deadly Jeju Air crash over the weekend.

Trading activity may be relatively subdued, however, as some traders are likely to remain away from their desks ahead of the New Year’s Day holiday on Wednesday.

U.S. stocks tumbled on Friday and the major averages all closed notably lower, with the tech-laden Nasdaq suffering a more pronounced loss as the yield on ten-year note rose to a nearly eight-month high.

The Dow closed down 333.59 points or 0.8 percent at 42,992.21, well off the day’s low of 42,761.56. The S&P 500, which dropped as low as 5,932.95, settled at 5,970.84 with a loss of 66.75 points or 1.1 percent, while the Nasdaq ended lower by 298.33 points or 1.5 percent at 19,722.03, recovering from a low of 19,533.40.

However, the Dow posted a weekly gain of about 1.4 percent, while the S&P 500 and the Nasdaq both moved up by more than 1.5 percent during the week.

Tesla (NASDAQ:TSLA) closed nearly 5 percent down, while Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Oracle (NYSE:ORCL), Netflix (NASDAQ:NFLX), Accenture (NYSE:ACN), Morgan Stanley (NYSE:MS) and Micron Technology (NASDAQ:MU) lost 1 to 3 percent.

On the economic front, data showed U.S. retail inventories, excluding autos, increased by 0.6 percent month-over-month in November following an upwardly revised 0.3 percent rise in the prior month, according to preliminary estimates.

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