The cautious start to the new year continues.
Global stocks and bonds fell further on Wednesday, a day after the Nasdaq Composite fell more than 1%. The technology-driven decline represents a sharp contrast to the year-end market rally as investors bet the Federal Reserve would soon begin cutting interest rates.
Futures markets show that traders still expect cuts to likely begin as early as March. In the meantime, investors will be watching new data for clues as to whether this could change. Key releases on Wednesday include job vacancies and manufacturing data.
Stock futures fell slightly. Contracts related to the technology-focused Nasdaq-100 led to the declines.
Benchmark government bond yields trended back towards 4%. The 10-year yield, which settled at 3.944% on Tuesday, is on track to rise for a fourth straight session.
Oil prices fell despite ongoing concerns about instability in the Middle East. Brent crude fell below $76 a barrel.
Overseas stocks fell. Hong Kong's Hang Seng Index and South Korea's Kospi both fell while Japanese markets remained closed for a holiday. The Stoxx Europe 600 fell slightly.
Bitcoin fell below $45,000.
Expected: The Institute for Supply Management manufacturing index is due at 10 a.m. ET, along with job vacancies data. Minutes from the Fed's December meeting will be released at 2 p.m
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