Michael Haddad By Ben Levisohn Sept. 28, 2018 7:39 a.m. ET
7:24 a.m. Stocks are sinking this morning, as yesterday’s rally looks more like a one-day blip. S&P 500futures have declined 0.3%, while Dow Jones Industrial Averagefutures have fallen 83 points, or 0.3%. Nasdaq Compositefutures have dropped 0.4%.
Why the market’s dropping: Ask around, and people will point you to Italy’s deficit, which was set at a 2.4% of GDP. “That number isn’t a disaster, but it isn’t good either, and the key takeaway from a U.S. market standpoint is the Italian deficit will put pressure on the euro (down again today) and on German bund yields (down five basis points this morning),” writes the Seven’s Report’s Tom Essaye. “That, in turn, will push the U.S. dollar higher and Treasury yields lower, neither of which are good for stocks.”