On Wall Street, futures on the main US stock indices are pointing sharply down, following the sell-offs that hit the S&P 500 and the Dow Jones yesterday.
The S&P 500 fell below the year’s intraday low tested in the previous session. The break in the level was interpreted by several strategists as the failure of the summer rally on the US stock exchange.
The S&P 500 slipped yesterday to an intraday low of 3,623.29 points, below the previous intraday low of 2022 that had been tested in mid-June and approached in the day before yesterday, equal to 3,636. The index thus tested a new low for the year.
The list then closed down 0.21% to 3,647.29 points; the Dow Jones Industrial Average reported a decline of 125.82 points (-0.43%), to 29,134.99, eliminating a gain that had been almost 400 points in the previous hours. The Nasdaq Composite, on the other hand, rose by 0.25% to 10,829.50 points.
Fed anxiety continues to exhaust US equities, and is confirmed by the continued hike in US Treasury rates.
In recent hours, the fear of more aggressive monetary tightening by Jerome Powell’s Fed, aimed at bringing the US inflation rate back to the 2% target, has caused 10-year US Treasury rates to jump to the 4% threshold for the first time since 2010. Yields remain on the rise but slow down and fluctuate at around 7.20 am Italian time around 3.98%. The two-year US Treasury rates are at 4.3%, after having tested 4.351% in the previous hours, the highest value since August 2007.
Dow Jones futures lost around 180 points (-0.61%), to around 29,023 points; futures on the S&P 500 fall by 0.74%, futures on the Nasdaq Composite fall by 1.03%.
The trend of Wall Street and US futures infects global equities: Asian stock exchanges are down.
The Nikkei 225 index on the Tokyo stock exchange is down by more than 2%, as does Hong Kong; the Shanghai stock exchange loses 1%, Seoul is the worst with a thud over 3%, Sidney -0.76%.