(Reuters) -U.S. stock futures fell on Wednesday as a surge in Treasury yields to multi-year highs amid rising interest rates dented gains powered by streaming giant Netflix after it reversed customer losses.

The yield on the benchmark 10-year Treasury note climbed to its highest levels since late 2008 as a selloff in U.S. government bonds resumed, adding another hurdle for stock markets attempting to break out of months of declines.

Wall Street’s three main indexes have notched two straight session of gains on the back of solid quarterly results from big U.S. banks, but they are still deep in bear market territory.

While some gauges of the equity market’s health showed that the latest rally in U.S. equities may be the start of a sustained move higher, many investors are awaiting signs of cooling inflation.

Apple Inc fell 1% in premarket trading after a report of iPhone 14 Plus production cut within weeks of starting shipments, while other growth stocks Tesla Inc, and Alphabet Inc struggled to gain, rising just 0.2% to 0.3%.

Netflix jumped 12.5% after it attracted 2.4 million new subscribers worldwide in the third quarter, more than double the consensus forecast, and guided for 4.5 million additions by year end.

“Netflix is the latest tonic for battered bulls,” said Elsa Lignos, global head of FX Strategy at RBC Capital Markets.

Netflix’s subscriber turnaround also lifted stocks of rival streaming companies. Warner Bros Discovery, Walt Disney and Roku gained between 1.6% and 2.7%.

“In recent days, two themes of European energy relief coupled with ‘better-than-expected’ Q3 earnings relief have taken hold, though it is still too early to judge and the bulk of big earnings releases don’t come until next week.”

Analysts have cut their third-quarter profit expectations for S&P 500 companies to just 2.8%, from an 11.1% increase forecast at the start of July, according to Refinitiv data.

At 7:31 a.m. ET, Dow e-minis were down 135 points, or 0.44%, S&P 500 e-minis were down 19.75 points, or 0.53%, and Nasdaq 100 e-minis were down 62.5 points, or 0.56%.

United Airlines Holdings Inc gained 6.3% as the U.S. carrier posted its strongest quarterly earnings in three years.

(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)

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