Stocks in the US have fallen again on Tuesday as shown by indexes. Shares of tech companies are on top of the selloff. The latest round is connected with increasing fears of more interest hikes among others.
Pressures from Europe and China
Other major sources of worry are the escalation in Ukraine and COVID measures in China. The market struggled to keep the pace of a sharp rally last week.
The inflow of data kept indicating more rate hikes from the Federal Reserve. The US jobs report led the pack of such data. The fear became intensified that the US economy could be pushed into a recession.
The most recent growth stocks like Microsoft Corp, Apple Inc., Tesla, and Twitter Inc all suffered a decline. They dropped between 0.7% and 1.3% in the premarket session.
Yields on the US ten-year benchmark Treasury bills were up on Tuesday. They hit a daily height of 4.006%.
The latest round of economic indicators is signaling continuous inflation in the days ahead. The money market has, thus, priced in about a 92% possibility of a 75 basis points rate increase. The next Federal Reserve policy meeting comes up later in November.
The consumer price index report is due to be released on Thursday. It is expected to give further clarity on the inflationary situation. Minutes from the Federal Reserve’s meeting in September are equally expected to be released this week.
Wall Street Indicators Fidget
On Tuesday, Belarus announced that its troops are with Russian troops at its borders. The statement said it is a defense mechanism against attacks. This has further escalated tensions in the region.
Big Chinese cities including Shanghai are ramping up COVID tests as infection rises. Authorities in some localities have shut down schools and other public places.
The preferred gauge of Wall Street, the CBOE index, increased to 33.57 points. It has gone up for the fourth session in a row and getting closer to an almost two-week high level.
As of 6 am ET, the Dow e-minis went down by 0.92% or 269 points. The S&P 500 e-minis were also down by 1.01% or 36.75 points. Nasdaq 100 also suffered a decline of 1.02% or 111.75 points.
The market’s expectation that the Feds might tone down the interest rate hikes might not happen after all.