On Wall Street, US futures are still frozen and around parity, the day after a bearish session.
The Dow Jones Industrial Average slipped 482.78 points, or 1.4%, to 33,947.10 yesterday; the S&P 500 lost 1.79% to 3,998.84, the Nasdaq Composite retreated 1.93% to 11,239.94.
The decline in the Nasdaq Composite was the worst since Nov. 9; it was also the worst session in almost a month for the S&P 500.
Among the shares slightly up in the pre-market Tesla, the share of the electric car (EV) giant founded and managed by Elon Musk, which yesterday paid off some rumors about a production cut in the Shanghai factory, slipping by more than 6%.
Big Tech stocks are also down, such as Amazon and Netflix. The better-than-expected release of the ISM services index in November fueled expectations of a more hawkish Fed, although for now forecasts on the outcome of the next central bank meeting, on 13 and 14 December, remain a rate hike of 50 basis points, after four consecutive tightening of 75 basis points, which brought the US cost of money to its highest level since 2008, between 3.75% and 4%.
However, traders’ fear is shifting more and more from the entity of the rates to the value of the terminal rate, or rather the final rate, which the Fed chairman Jerome Powell himself said could be confirmed as higher.
Yesterday, rates on 10-year Treasuries jumped nearly 9 basis points to 3.588%. Yields reversed today, falling to 3.573%.