U.S. stock futures fall on growing worries of economic downturn
US stock index futures fell on Thursday amid concerns over rampant US inflation, recession, a global economic downturn due to aggressive interest rate hikes by central banks, and risks of potential turbulence contagion in UK markets.
The e-mini Dow and S&P 500 dropped for the seventh time in eight sessions, while megacap growth names such as Amazon.com Inc, Apple Inc, Microsoft Corp, Meta Platforms Inc, and Tesla Inc lost between 0.9% and 2.1% in the premarket trade.
The calm caused by Wednesday’s Bank of England decision to buy long-term government bonds to stabilize the market turmoil caused by the government’s new economic plan was short-lived.
The pound fell and bond prices slipped, with the sale of British assets extending to US Treasuries and top-notch German bonds as well. Read more
While US equities closed sharply higher in the previous session due to easing Treasury yields, they were hit for much of the year as rising yields dented the appeal for equities.
“The world is moving from a low interest rate environment to a high interest rate environment,” said Andrea Cicione, strategy manager at TS Lombard.
MacDailyNews takes: The era of free money is over.
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