U.S. stock futures on Wednesday showed Wall Street in danger of recording a seven-day losing streak as worries about rising bond yields continued to suppress investors’ risk appetite.How are stock-index futures trading
S&P 500 futures
dipped 25 points, or 0.6%, to 3636
Dow Jones Industrial Average futures
fell 134 points, or 0.5%, to 29069
Nasdaq 100 futures
eased 120 points, or 1.1%, to 11214
On Tuesday, the Dow Jones Industrial Average
fell 126 points, or 0.43%, to 29135, the S&P 500
declined 8 points, or 0.21%, to 3647, and the Nasdaq Composite
gained 27 points, or 0.25%, to 10830. The Nasdaq Composite was down 32.6% from its record high from November last year.
What’s driving markets Equity futures dipped after 10-year U.S. Treasury yields
early on Wednesday breached 4% for the first time since the 2008 crisis. Bond markets have been leading stocks of late as investors fret that the Federal Reserve’s determination to combat inflation will continue to push borrowing costs higher, damaging the economy and corporate earnings. “Our central market view has been that pressure towards tighter U.S. financial conditions is unlikely to end until the economy either enters a clear recession or shows sustained inflation progress,” wrote Dominic Wilson, economic analyst at Goldman Sachs. “Equity market troughs in past monetary policy-driven corrections have always been quite closely preceded by a peak in 10-year yields, a threshold not yet reached,” he added. The market must contend with yet another flurry of Fed speakers on Wednesday. Between 8:35 a.m. and 2 p.m. Eastern, various topics will be addressed by Atlanta Fed president Raphael Bostic; Chair Jay Powell; Gov. Michelle Bowman; Richmond Fed president Tom Barkin; and Chicago Fed president Charles Evans. Also pressuring futures was a 3% fall in Apple shares
amid reports the tech giant was halting plans to increase production of its new iPhones. However, Jim Cramer dismissed the significance of the news.