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US stock index futures tumbled on Tuesday, suggesting that the recent stock market retreat was about to continue as investors continued to be concerned about rising bond yields and their possible implications for investors. stock prices.
Where are the main landmarks traded?
Futures for the Dow Jones Industrial Average
YMU9, -0.93%
fell 132 points, or 0.5%, to 26,413. Futures on the S & P-500
ESU9, -0.47%
lost 13 points to 2,880.50, a decrease of 0.5%. Future Nasdaq-100
NQU9, + 0.17%
lost 35 points, or 0.5%, to 7,357.
The Dow
DJIA, + 0.15%
had a slight gain on Monday but the S & P
SPX, -0.04%
and the Nasdaq
COMP -0.67%
fell for a third consecutive session. In the last two sessions, the S & P 500 has fallen below its 50-day moving average, a closely watched indicator of short-term dynamics. However, it has not closed below its average since July. If that happens, it could be a catalyst for further sales.
What motivates the action of the market?
Recent swings have been driven by rising bond yields and interest rates, both of which could mark the start of a new phase in post-crisis markets, which have benefited from long-term returns. extremely low.
Higher returns mean higher borrowing costs for companies and investors, and have led to a revaluation of stock valuations, already judged by some measures. In addition, richer rates of so-called risk-free bonds can compete with equities, which are perceived as relatively riskier.
Escalation rates, however, were in a strong context for the domestic economy, with a number of economic indicators supporting the view that US expansion was continuing rapidly.
Do not miss: Of course, yields rise, but it is the speed of the bond market that threatens to slow down equities
On Tuesday, the 10-year US Treasury Note yield rose 1.4 basis points to 3.24%, reaching its highest level since 2011. The bond market was closed on Monday for the Columbus holiday.
Bond yields are only the latest in a series of potential headwinds that investors say could put an end to the long-term uptrend in the market. Merchants also continue to monitor recent developments in trade policy, as well as political uncertainties abroad, particularly with regard to Italy's fiscal objectives.
Opinion: Stock risks rose last week, according to Elliott Wave
Monday, the International Monetary Fund lowered its global growth forecast for this year and close to 3.7%, 0.2% lower than the two previous years. This reflects weaker growth in advanced economies, rising trade tensions and higher oil prices.
According to the latest economic data, the index of small business optimism of the National Federation of Independent Business fell 0.9 point in September, from a record high of 45 years at a seasonally adjusted level of 108.8.
On Tuesday, speakers from the Federal Reserve, including Robert Kaplan, chairman of the Dallas Federal Reserve, and Patrick Harker, president of the Philadelphia Fed, will also have comments. In addition, John Williams, President of the Federal Reserve Bank of New York, will speak tonight and give a press conference.
What do market analysts say?
"The pressure on the stock markets is increasing. It is dangerous that at the same time the pressure comes from several regions, which raises fears that the synchronous growth period of last year would be followed by a period of synchronous braking, "wrote FxPro analysts. "In the United States, the pressure on the markets is due to the fact that the Fed takes a position too hawkish" with interest rates.
What stocks are under discussion?
Pinnacle Foods
PF + 1.18%
The third quarter sales forecast was below expectations, but it also anticipated adjusted earnings that exceeded analysts' expectations.
The Wall Street Journal reported that Google had unveiled private data from hundreds of thousands of Google+ social network users and then chose not to disclose the problem last spring, in part because he feared that this results in regulatory control and damage to reputation. . Bloomberg also announced that Google had waived a major cloud computing contract with the Pentagon. Actions of Alphabet Inc.
GOOGL, -1.02%
GOOG, -0.72%
Google's parent company could be the focus of attention on Tuesday.
Facebook Inc.
FB -0.05%
Monday announced the launch of Portal, a video call device designed to help users "connect with friends and family" using artificial intelligence cameras, but some privacy advocates have doubt the moment chosen for the launch of the tablet.
Trian Fund Management LP evaluates a public takeover bid to Papa John's International Inc.
PZZA, + 0.14%
according to the Wall Street Journal.
Perrigo Co. PLC
PRGO, + 1.24%
Monday night, Murray Kessler was appointed President and Chief Executive Officer.
Affimed NV
AFMD, + 10.77%
could be under pressure one day after the developer of the biotech drug suspended two clinical trials after the death of a study participant.
Where are the other markets traded?
Asian equities were mixed as Chinese equities rose but Japanese stocks fell. The main European indices were also lower overall.
Crude oil price
CLK9, + 0.48%
rose 0.8% while gold
GCM9, + 0.18%
was slightly higher during the day. US dollar index
DXY, + 0.39%
increased by 0.3%.
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