Stock futures fell on Wednesday as traders struggled to find a foothold after the S&P 500 hit a new bear market low in the previous session, with the 10-year Treasury yield continuing to rise.
Futures linked to the Dow Jones Industrial Average lost 67 points, or about 0.2%. S&P 500 futures were down 0.4%, and Nasdaq 100 futures were down 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 short-term two-year rate fell 6 basis points to 4.248%.
Meanwhile, the Bank of England said that You will temporarily buy long-term UK government bonds In an attempt to stabilize the deteriorating British pound. Sterling briefly featured on the news before trading 0.5% lower against the dollar at $1.0647.
During Tuesday’s session, the S&P 500 index reached 3623.29 to mark a new low in 2022 and a lower market. The broader market index trimmed its losses after reaching that level, but nevertheless ended the day 0.2% lower, marking the sixth consecutive daily decline.
Several technical metrics are showing that the stock market may be oversold, but some on Wall Street are concerned that investors have not been pricing slowing earnings and the impact of an interest rate hike by the Federal Reserve. The breakout of the S&P 500 below its previous low is a major indication for some that stocks are continuing to fall.
“I think we’re certainly not at the very end of the road in terms of pricing in the result of a full-blown recession. … We really need to get to cheap stock valuations, and we’re not quite that far yet,” Anastasia Amoroso, chief investment strategist at iCapital said on Tuesday.closing bell.“
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