Summary:
Global stock futures and Treasury yields fell on Wednesday as a tech selloff raised concerns about the U.S. economic outlook.
Global stock futures fell on Wednesday in the wake of a tech selloff, while Treasury yields edged lower as investors fretted over the outlook for the world's largest economy.
Wall Street closed sharply lower overnight after the US returned from a holiday at the start of the week, with AI darling Nvidia tumbling nearly 10%. The tech-heavy Nikkei index slid more than 3%.
September has historically been a bad month for stocks. A slew of economic data is due throughout the week and the NFP report could decide the size of a rate cut expected this month.
A decline of 10% in the S&P 500 index before the US presidential election in November is highly likely amid uncertainties around rate cuts and corporate earnings, Morgan Stanley CIO said in July.
He maintained a bearish outlook for the majority of this year, one of few prominent forecasters to do so, citing overstretched valuations.
The VIX rose from 15.6 to 20.7, climbing above its long-term average to its highest level in three weeks. The VVIX jumped from 94 to 130, suggesting investors were wary of further volatility.
The S&P 500 index has broken below 50 SMA – a sign of further losses in the upcoming sessions. The next major support lies at 5,400.
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