US stock futures, oil prices and bond yields tumbled amid concerns that major economies are heading into recession.
S&P 500 futures lost 0.5% on Tuesday, a day after the benchmark stock index fell 1.2%. Contracts for the Dow Jones Industrial Average lost 0.7%. Technology-focused Nasdaq 100 futures were down 0.1%.
Commodity markets extended their recent losses fueled by concerns that demand for raw materials will recede as global growth slows. Brent crude futures, the benchmark in international energy markets, fell 4.4% to $102.34 a barrel.
In the bond market, the yield on the 10-year Treasury fell to 2.924% from 2.990% on Monday. Yields, which move inversely with prices, have drifted lower since late June on expectations that an economic slowdown would prompt the Federal Reserve to Pulling interest rates down in 2023.
For now, though, the Fed is bent on raising interest rates in an effort to tame decades-old high inflation. Investors say this campaign, along with signs that the US economy is losing momentum, could cause more pain for markets after the first half of the year. Adding to the challenges facing money managers are China’s struggle to contain Covid-19 and the war in Ukraine.
Philip Saunders, co-head of multi-asset growth at
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Asset Manager based in UK and South Africa. “The main thing that’s happening is that liquidity is going down.”
A look at the markets shows that asset managers are moving money in ways that indicate they are expecting a recession. WSJ’s Dion Rabouin explains what to look for and why they tell us that investors are increasingly widening in a recession. Illustration: David Fang
between individual stocks,
The pre-sales market rose 0.9% after the beverage company said its second-quarter earnings and revenue beat analysts’ expectations.
AngioDynamicsAnd the
The medical device company, which is also scheduled to release quarterly results before the opening bell.
Earnings season among major US companies will increase later in the week with results due from major financial institutions. Investors will pay special attention to bank executives’ comments about the economy’s trajectory and implications Higher input costs on profit margins.
Elsewhere in commodities, LME copper futures fell 2.8% to below $7,400 a metric ton. industrial metal barometer of the global economy Because of its use in construction and heavy industry, it has fallen by more than a fifth over the past month and is more than 30% below its all-time high of more than $10,000 per metric ton recorded in March.
One of the factors that have negatively affected commodities in recent weeks has been the strengthening of the dollar. The dollar’s rally stalled on Tuesday, sending the WSJ Dollar Index down 0.1%. On Monday, it rose 1.1 percent, bringing the dollar to its highest level against a basket of other currencies since 2002.
Traders worked on the floor of the New York Stock Exchange on Monday.
picture:
Michael M. Santiago / Getty Images
Meanwhile, data from the National Federation of Independent Business showed that confidence among small business owners fell to its lowest level in nearly a decade in June.
International stocks fell. The Stoxx Europe 600 lost 0.3%, pulled down by technology and real estate stocks. China’s Shanghai Composite is down 1%, Hong Kong’s Hang Seng is down 1.3% and Japan’s Nikkei 225 is down 1.8%.
Write to Joe Wallace at [email protected]
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