Stock futures fell on Wednesday as traders struggled to find a foothold after the S&P 500 hit a new low in a bear market in the previous session.
Futures related to the Dow Jones Industrial Average lost 20 points, or about 0.1%. S&P 500 futures are down 0.1%, and Nasdaq 100 futures are down 0.6%.
Stock futures trimmed earlier losses after the Bank of England said it You will temporarily buy long-term UK government bonds In an attempt to stabilize the deteriorating British pound. Sterling briefly featured on the news before trading 0.5% lower against the dollar at $1.0647.
US 10-year Treasury yields gave up their initial gains after the announcement, last trading at around 3.93%. Earlier in the trading session, the record price broke above 4% for the first time since 2010.
Wall Street exited a mixed session as the S&P 500 reached a new bear market bottom at 3623.29 and recorded its sixth consecutive day of losses, while the Nasdaq Composite posted gains.
Several technical metrics are showing that the stock market may be oversold, but some on Wall Street are concerned that investors have not been pricing slowing earnings and the impact of an interest rate hike by the Federal Reserve. The breakout of the S&P 500 below its previous low is a major indication for some that stocks are continuing to fall.
“I think we’re certainly not at the end of the road in terms of pricing in the result of a full-blown recession. … We really need to get to cheap stock valuations, and we haven’t gotten that far yet,” Anastasia Amoroso, chief investment analyst at iCapital said on Tuesday.closing bell.“
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