Stock Futures Fall After S&P 500 Hits New Low For The Year; 10-Year Treasury Yield Tops 4%9/28/2022 Stock futures fell Wednesday as traders struggle to find their footing after the S&P 500 notched a fresh bear market low in the previous session, with the 10-year Treasury yield continuing its march higher. Futures tied to the Dow Jones Industrial Average lost 67 points, or about 0.2%. S&P 500 futures shed 0.4%, and Nasdaq 100 futures slid about 0.8%. The benchmark 10-year Treasury yield rose 4 basis points to 4.005%, marking the first time since 2010 that it traded above the key 4% level. The shorter-term 2-year rate dipped 6 basis points to 4.248%. Meanwhile, the Bank of England said it would temporarily purchase long-dated UK government bonds in an effort to stabilize the plunging British pound. Sterling briefly popped on the news before trading 0.5% lower against the dollar at $1.0647. During Tuesday’s session, the S&P 500 hit of 3,623.29 to mark a new 2022 and bear market low. The broader market index pared losses after reaching that level, but still ended the day down 0.2% for its sixth consecutive daily decline. Several technical metrics show that the stock market may be oversold, but some on Wall Street are worried that investors have not priced in an earnings slowdown and the impact of the Federal Reserve’s rate hikes. The S&P 500 breaking below its previous low is a key indicator for some that stocks still have further to fall. “I think we’re certainly not at the end of the road in terms of pricing in the full recessionary outcome. … We really need to get to dirt cheap valuations on equities, and we’re not quite there yet,” Anastasia Amoroso, chief investment strategist at iCapital, said on Tuesday’s “Closing Bell.“ British pound briefly pops after Bank of England announcementThe British pound got a brief boost Wednesday after the Bank of England said it would buy long-dated UK government bonds in an effort to stabilize the country’s currency. The pound recently hit a record low against the dollar around $1.03. On Wednesday, sterling traded 0.6% lower at $1.0672. —Fred Imbert European markets slide as global stocks retreatEuropean stocks were sharply lower on Wednesday as global markets sold off on economic concerns surrounding inflation and the growth outlook. The pan-European Stoxx 600 fell 1.9% by mid-morning, with banks and insurance stocks plunging 4.2% to lead losses. Healthcare was the only sector in positive territory, adding 0.7%. The negative trade in Europe comes after a torrid night for markets in the Asia-Pacific. – Elliot Smith CNBC Pro: Credit Suisse says now’s the time to buy two green hydrogen stocks — and gives one over 200% upsideCredit Suisse says it’s time to enter the green hydrogen sector, with a number of catalysts set to drive the clean energy powerhouse. “Green hydrogen is a growth market — we increase our 2030 market estimates by [over] 4x,” the bank said, forecasting that green hydrogen production will expand by around 40 times by 2030. It names two stocks to play the boom — giving one upside of more than 200%. CNBC Pro subscribers can read more here. — Weizhen Tan U.S. 10-year Treasury yield breaches 4% for the first time since 2010–Jihye Lee CNBC Pro: Asset manager reveals what’s next for stocks — and shares how he’s trading the marketNeil Veitch, investment director at Edinburgh-based SVM Asset Management, says he expects the macro landscape to remain “quite difficult” for the remainder of the year. Speaking to CNBC Pro Talks last week, Veitch named the key drivers that could help the stock market to turn “more constructive” and shared his take on growth versus value. CNBC Subscribers can read more here. — Zavier Ong Earnings questions, potential recession mean more selling could be aheadThe Dow and S&P 500 have fallen for six straight days, with many of those seeing broad selling typical of so-called “washout” days. That can sometimes be a contrarian buy signal on Wall Street, but many investment professionals are skeptical that the selling is over. One reason is that earnings expectations for next year still show solid growth, which would be unlikely in the event of a recession. “We know that if we start seeing a turnaround in the 2-year yields … and if we start seeing a turnaround in the dollar, that gives us the ability to bounce from these extremely oversold conditions,” said Andrew Smith, chief investment strategist of Delos Capital Advisors in Dallas. “But I have a hard time reconciling in my mind that the earnings story is going to be as good as we expect.” Additionally, the dramatic moves in the bond and currency markets means that “something broke” and it may be smart to wait for that information to shake out, Smith said. On the positive side, Smith pointed to a strong labor market and signs of continued spending on travel as a sign that the U.S. economy may be able to avoid a major recession. — Jesse Pound Futures open higherStock futures rose slightly after trading began at 6 p.m. Dow futures rose more than 60 points at one time, though those gains have since shrunk. Nasdaq 100 futures had the biggest early jump of three, suggesting that tech may continue to outperform on Wednesday. — Jesse Pound S&P 500 takes out June low on TuesdayThough Tuesday’s closing levels showed relatively modest daily moves, the S&P 500 fell below its previous intraday low for the year during the session. That move was seen by many as confirmation that the summer rally for stocks has failed. The S&P 500 is now 24.3% off of its record high, and the Dow is also in bear market territory, down roughly 21.2%. The Nasdaq Composite, whose decline dates back to last November, is 33.2% below its high-water mark. The next key metric for investors in the days ahead could come from the bond market, where the 10-year Treasury yield has surged to just below the 4% level. — Jesse Pound, Christopher Hayes from https://digitalalaskanews.com/stock-futures-fall-after-s-10-year-treasury-yield-tops-4/
0 Comments
Leave a Reply. |
Fred Mika
Digital journalism, also known as netizen journalism or online journalism, is a contemporary form of journalism where editorial content is distributed via the Internet, as opposed to publishing via print or broadcast. |