us stock index futures tumbled to their lowest levels of the morning early thursday after the adp report on private payrolls came in much hotter than economists had expected the yield on the 10year treasury note broke above 4 after the data while the 2year topped 5 piling more pressure on equity futures on wednesday the dow jones industrial average fell 130 points or 038 to 34289 the sp 500 declined 9 points or 02 to 4447 and the nasdaq composite dropped 25 points or 018 to 13792 the prospect of the federal reserve keeping interest rates higher for longer  and the damage that may ultimately do to the global economy  was again rattling sentiment in stock markets on thursday monthly adp private payrolls data added more fuel to investors concerns after showing the us economy created 497000 new jobs in june nearly double the number created in may and far surpassing economists forecast for 220000 the data sent treasury yields surging above closely watched levels as investors bet that it would encourage the fed to be even more aggressive this appeared to heap even more pressure on us stock futures since higher bond yields make higherrisk equities less appealing to investors by comparison bond yields move inversely to prices minutes from the feds june policy meeting released wednesday also helped cemented expectations that the us central bank would raise borrowing costs again in july and perhaps again soon after as the fed works to drive the inflation rate back to the central banks 2 target benchmark treasury yields have reached fourmonth peaks and in the case of the 2year the yield is just shy of its highest level since 2006 stockmarket selling wasnt limited to the us asian equities were hit hard overnight with hong kongs hang seng index shedding 3 after goldman sachs downgraded chinas banks while a goldman survey showed chinese investors appeared unconvinced that beijing would deliver a big fiscal or monetary stimulus or economic reforms to support waning economic growth persistent geopolitical tensions ongoing concerns about uschina decoupling domestic regulation and chinas internal growth challenges continue to support the pessimistic arguments about chinas risk markets said stephen innes managing director at spi asset management in emailed commentary declines in asian and european bourses fed into us index futures with traders wary that wall streets latest rally left the market vulnerable to renewed concerns about borrowing costs after the start of the week saw the techheavy nasdaq composite up more than 30 for the yeartodate traders also digested weekly jobless claims data which showed the number of americans applying for unemployment benefits increased during the week ended july 1 by 12000 to 248000 more data on the us labor market will arrive on friday with the labor departments monthly jobs report later thursday morning investors will scrutinize the may jolts report survey and ism services survey for june both are due at 10 am eastern time analysts warned that investors focus will soon shift to corporate earnings reports for the second quarter as earnings season begins this content was created by marketwatch which is operated by dow jones  co marketwatch is published independently from dow jones newswires and the wall street journal