NEW YORK (TheStreet) -- Stock futures flattened on Thursday as weekly jobless claims beat forecasts but markets remained under pressure amid a global selloff driven by a sharp increase in global bond yields.
S&P 500 futures were flat, Dow Jones Industrial Average futures were up 0.02%, and Nasdaq futures were flat.
Stocks tumbled on Wednesday after Federal Reserve Chair Janet Yellen warned of potentially overstretched equity valuations. Yellen said market valuations were "generally quite high," though noted the Fed was not seeing signs of a bubble.
Weekly initial jobless claims rose at a slower-than-expected pace to 265,000 for the week ended May 1. Economists had expected claims for unemployment benefits to rise to 280,000 from 262,000 the week earlier. The U.S. jobs report for April will be released on Friday.
European markets were trading lower as a week-long selloff in government bonds threatened to curb recent progress toward the eurozone's economic recovery.
"There has been a massive repositioning over the last 10 days and it is still ongoing," Philippe Gudin de Vallerin, head of euro research at Barclays in Paris, told Reuters. "From a fundamental point of view the move has certainly been excessive. It is difficult to understand."
U.S. Treasury yields were trading close to recent highs. Yields reached their highest point since early March earlier this week as U.S. Treasuries sold off alongside German, Spanish, Italian and U.K. bonds. The U.S. 10-year Treasury had reached 2.274% earlier in the session, after closing at 2.24% on Wednesday.
Tesla Motors (TSLA) fell more than 2% in premarket trading after reporting a quarterly loss of $154 million even as shipments reached a record 10,000 cars. The automaker reported an adjusted loss of 36 cents a share, narrower than expectations for a loss of 50 cents.