U.S. stock index futures fell on Thursday on worries of rampant U.S. inflation, recession, a global economic downturn from aggressive interest-rate hikes by central banks, and risks of a potential contagion from a turmoil in UK markets.
The Dow and S&P 500 e-minis fell 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 premarket trading.
The calm brought about by the Bank of England’s decision on Wednesday to buy long-dated government securities to stabilize the turmoil in the markets caused by the government’s new economic plan was short-lived.
Sterling fell and bond prices slid, with the selloff in British assets spilling over to even safe-haven U.S. Treasuries and top-rated German bonds. read more
Even though U.S. stocks ended sharply higher in previous session due to easing Treasury yields, they have been battered for a large part of the year as surging yields dented the appeal for stocks.
“The world is transitioning from a low interest rate environment to a high interest rate environment,” said Andrea Cicione, head of strategy at TS Lombard.
MacDailyNews Take: The era of free money is over.
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!