Stocks- Wall Street Set To Tumble as Sell-Off Continues

Date | 07-02-2018 - 03:22 PM Article Type | Stock Markets Region | United States

© Reuters. U.S. futures were down on Tuesday. – U.S. Futures pointed to another negative day for stock markets on Tuesday as a sell-off continues world wide.

The S&P 500 futures fell over 14 points or 0.54% to 2,593.75 as of 6:50 AM ET (11:50 GMT) while Dow futures decreased 225 points or 0.94% to 23,713.0. Meanwhile tech heavy Nasdaq 100 futures was down over 39 points or 0.61% to 6,390.0.

The Dow lost over a 1,000 points at the close on Monday, as inflation concerns pushed stocks down. The negative movements started on Friday after a report showed that U.S. wages increased at its fastest pace in eight and a half year.

Bond yields rose after the report, as investors grow concerned that inflation will rise and the Federal Reserve will interest rates more than expected next year. The 10-year Treasury note fell to 2.708% while the 30-year Treasury note decreased to 3.005%. The movement in bond prices has contributed to market volatility. As bond yields rise, prices fall

Investors will be looking to see how the Fed reacts to rising bond yields, as Jerome Powell steps in to lead the central bank. Traders will also look to economic and earnings news, with the Job Openings and Labor Turnover Survey (JOLTS) report out at 10:00 AM ET (15:00 GMT).

Payments processor Square Inc (NYSE:SQ) was among the worst performers in pre-market trading, falling 6.14% while Chinese e-commerce giant Alibaba (NYSE:BABA) dipped 2.91% and Facebook (NASDAQ:FB) lost 1.63%. Meanwhile Microsoft (NASDAQ:MSFT) decreased 1.03% and General Electric (NYSE:GE) inched down 0.74%.

Elsewhere telecommunications firm Nokia (HE:NOKIA) Corp ADR (NYSE:NOK) rose 1.60% while Royal Dutch Shell (LON:RDSa) B PLC (NYSE:RDSb) company increased 0.45% and Qualcomm (NASDAQ:QCOM) was up 3.19%.

On the earnings front, Allergan (NYSE:AGN), General Motors (NYSE:GM), WaltDisney Company (NYSE:DIS), Chipotle Mexican Grill (NYSE:CMG), and Snap Inc(NYSE:SNAP) are just a few of the major firms expected to publish their fourth quarter results on Tuesday.

In Europe stocks were down. Germany’s DAX fell 263 points or 2.08% while in France the CAC 40 decreased 118 points or 2.23% and in London, the FTSE 100 was down 175 points or 2.39%. Meanwhile the pan-European Euro Stoxx 50 lost 248 points or 2.47% while Spain’s IBEX 35 slumped 244 points or 2.43%.

In commodities, gold futures rose 0.64% to $1,345.10 a troy ounce while crude oilfutures were down 0.83% to $63.62 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, inched down 0.15% to 89.44.

Author: Heng V. Mony
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