Stock futures fell Wednesday as traders struggle to find their footing after the S&P 500 notched a fresh bear market low in the previous session, with the 10-year Treasury yield continuing its march higher.
Futures tied to the Dow Jones Industrial Average lost 67 points, or about 0.2%. S&P 500 futures shed 0.4%, and Nasdaq 100 futures slid about 0.8%.
The benchmark 10-year Treasury yield rose 4 basis points to 4.005%, marking the first time since 2010 that it traded above the key 4% level. The shorter-term 2-year rate dipped 6 basis points to 4.248%.
Meanwhile, the Bank of England said it would temporarily purchase long-dated UK government funds in an effort to stabilize the plunging British pound. Sterling briefly popped on the news before trading 0.5% lower against the dollar at $1.0647.
During Tuesday’s session, the S&P 500 hit of 3,623.29 to mark a new 2022 and bear market low. The broader market index pared losses after reaching that level, but still ended the day down 0.2% for its sixth consecutive daily decline.
Several technical metrics show that the stock market may be oversold, but some on Wall Street are worried that investors have not priced in an earnings slowdown and the impact of the Federal Reserve’s rate hikes. The S&P 500 breaking below its previous low is a key indicator for some that stocks still have further to fall.
“I think we’re certainly not at the end of the road in terms of pricing in the full recessionary outcome. … We really need to get to dirt cheap valuations on equities, and we’re not quite there yet,” Anastasia Amoroso, chief investment strategist at iCapital, said on Tuesday’s “Closing Bell.“