Wall Street is losing ground again, after the positive session of the eve, in which the improvement in sentiment has started everywhere following the intervention of the Bank of England.
At 12.40 Italian time, the futures on the Dow Jones slipped by 256 points (-0.86%); futures on the S&P 500 fell by 1.01%, while futures on the Nasdaq Composite fell by 1.33%.
The Dow Jones was up 548.75 points, or + 1.88%, to 29,683.74, while the S&P 500 rebounded 1.97% to 3,719.04, after testing a new low in Tuesday’s session. of the year and its bear market phase. The Nasdaq Composite was up 2.05% to close at 11,051.64.
Yesterday the Bank of England announced that it will suspend the start of the UK government bond disposals it had planned for next week by temporarily purchasing long-term gilts in order to counter the market chaos:
chaos that has been caused by the decision of the government of Liz Truss to launch a maxi fiscal bazooka of tax cuts that economists and strategists do not consider sustainable.
The BOE effect was quickly priced by the gilts, with 10- and 30-year yields immediately slipping more than 30 basis points after the announcement. The move by the UK central bank has also eased tensions in the market for US government bonds and other sovereign debt: after jumping to the last 14-year record above 4%, 10-year US Treasury rates reported the strongest daily loss since 2020, slipping to 3.816%.
September is drawing to a close, confirming Wall Street as the worst month of this year since June.
The worst index is the Nasdaq Composite, down by 6.5%, while the Dow Jones and the S&P 500 are preparing to close the month down by 5.8% and 5.9% respectively.
The effect of the Bank of England lasted the time of a day: on the US Treasury market, ten-year rates recover part of the losses suffered yesterday (-25 basis points), rising to 3.842%, while two-year rates are little. moved to 4.221%.
In the hours leading up to the Bank of England announcement, 10-year US Treasury rates had soared to over 4% for the first time since 2008, or in 14 years, flying up to 4.019%, while Treasury yields at two years had jumped up to 4.351%, the highest value since August 2007.