U.S. stocks were seen falling at the open on Wednesday as equity futures erased modest gains, amid a number of global central banks adopting easy-money policies in the face of an intensifying trade conflict between Beijing and Washington.
How did benchmarks perform?
Futures for the Dow Jones Industrial Average YMU19, -0.99% fell 156 points, or 0.6%, to 25,768, but had been up by as many as 100 points at 26,035, those for the S&P 500 index ESU19, -0.98% lost 14.25 points, or 0.5%, at 2,862, after touching 2,889.25. Meanwhile, Nasdaq-100 futures NQU19, -1.01% declined 30.75 points, or 0.4%, to reach 7,485,25, shedding a more than 50-point gain.
On Tuesday, the Dow DJIA, +1.21% rose 311.78 points, or 1.2%, to end at 26,029.52, while the S&P 500 index SPX, +1.30% climbed 37.03 points, or 1.3%, to close at 2.881.77, powered by a rally by the information technology XLK, +1.66% and communication services XLC, +1.45% sectors, while the Nasdaq Composite Index COMP, +1.39% surged 107.23 points, or 1.4%, to finish at 7,833.27.
What’s driving the market?
Equity markets looked set to fall at the start of trade on Wednesday, with stocks giving up gains as U.S. Treasury and European government bonds plumbed fresh lows. The 10-year Treasury TMUBMUSD10Y, -4.44% fell below 1.70%, falling to 1.63%, around the lowest since late 2016, while comparable German TMBMKDE-10Y, -10.94% it a record low at negative 0.59%.
Adding to market jitters is growing fears of a recession in the U.S. against a weaken economic backdrop throughout the globe.
Central bank’s in India and New Zealand (as well as the Thailand) lowered their domestic interest rates to levels that are lower than had been expected, highlighting anxieties centered on the health of the world-wide economy.
India’s central bank cut its key interest rate for the fourth consecutive