S&P 500 futures rose 0.4% after falling 3.9% on Monday. Nasdaq-100 futures rose 0.7%, indicating a modest rise in technology stocks after the opening bell. Dow Jones Industrial Average futures increased by 0.1%. Global stocks have come under pressure in recent weeks amid concerns that major central banks will have to move more aggressively than expected to fight inflation. The latest release of consumer price data in the US further encouraged these fears, as it rose from 8.6% last month to its highest level in more than four decades. The S&P 500 has fallen over the last four consecutive sessions, losing more than 10%. The index is falling by almost 22% from the last high record. “I would not necessarily read much in a kind of mini twist. “Things have sold out and now people will just wait for the Fed,” said Colin Graham, Robeco’s head of multiasset strategy. The Federal Reserve is scheduled to issue a monetary policy decision on Wednesday, following a two-day meeting. The Wall Street Journal reported Monday that policymakers are considering a surprise rate hike of 0.75 percentage points. Some investors are likely to buy after such a sharp drop in markets, Mr Graham said. “At one point yesterday, every share in the S&P 500 was down. “As long-term investors, we are looking for value, as long as the financial loss is not too great.” Investors are struggling to come to terms with strong market forces: soaring inflation eroding consumer purchasing power and the prospect of a recession that could hurt company profits and lead to weaker companies failing. A bond market index, the difference in the yield curve between two-year and 10-year government debt, reversed briefly overnight, flashing a warning that a recession may be ahead. The European morning rose to 0.011 percentage points. The U.S. yield curve last reversed in April, when yields on shorter-term bonds rose more than the most recent, amid expectations that the Fed could raise interest rates rapidly following a strong job report. . Bond markets were generally more stable on Tuesday. The yield on the 10-year government bond fell to 3.307% from 3.371% on Monday, reversing direction after four consecutive days of rise. Prices rise when yields fall. Yields on some short-term bonds rose further, with a two-year rise to 3.290% from 3.279% the previous day, following the biggest two-day jump since the week after the collapse of Lehman Brothers, according to an analysis by Deutsche Bank. . The producer price index for May, a measure of inflation for domestic producers, is expected at 8:30 a.m. ET. Economists forecast an increase over the previous month. While many markets have come under pressure this year, rising interest rates have had a particularly big impact on the stocks of losing companies that were once favorite pandemics and other speculative bets. Higher interest rates on secure assets, such as government bonds, tend to reduce the relative attractiveness of riskier investments – and the perceived value of future cash flows – while increasing corporate borrowing costs. “I do not think we will see anything like a V-shaped recovery,” said Rick Pitcairn, chief investment officer at the Pennsylvania-based Pitcairn Multi-Family Office. “The way we rebuild will be more silent – it will not be immediately back on high speculative stocks.” In pre-market transactions, the business software company Oracle jumped 13% after reporting an increase in quarterly sales that exceeded analysts’ expectations, due to its share in cloud computing. Abroad, the continental Stoxx Europe 600 slipped 1%. Shares of French IT company Atos plunged 27% after the resignation of its CEO and the company said it planned to split the big data and security division. The bonds issued by the Greek government, one of the weakest European economies, sold out. The 10-year yield rose to 4,650%, the highest level since November 2018. In Asia-Pacific trading, Australian stocks lost ground after the market opened after a holiday. The S & P / ASX 200 index in Sydney had a 3.6% drop, the biggest drop in a single day for more than two years. The Shanghai Composite Index rose 1%, while the Hong Kong Hang Seng Index closed steadily. The Japanese Nikkei 225 fell 1.3%. The Japanese yen changed little, hitting near the lowest level of the dollar in the last 24 years, which it reached on Monday. Bitcoin, the largest cryptocurrency, has remained under pressure after a sharp sell-off in recent days. It traded at around $ 22,300 on Tuesday, losing another 4%. It is 68% of the last high record. In commodities, Brent crude, the global benchmark for oil, rose 0.7% to $ 123.06. Write to Anna Hirtenstein at [email protected] and Dave Sebastian at [email protected]
Asian stocks remained under pressure on Tuesday.
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