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Stock Futures Fall After S&P 500 Hits New Year’s Low; 10-year Treasury yield briefly tops 4%

Stock Futures Fall After S&P 500 Hits New Year's Low;  10-year Treasury yield briefly tops 4%
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European markets fall as global stocks retreat

european stocks fell back on Wednesday as global markets slid on economic concerns over inflation and growth prospects.

the pan-european Stoxx 600 it fell 1% in early trading, with banks shedding 2.4% to lead the losses, while health care was the only sector in positive territory, adding 0.8%.

Negative trading in Europe comes after a torrid night for markets in Asia-Pacific.

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Credit Suisse says it’s time to enter the green hydrogen sector, with a number of catalysts in place to boost the power of clean energy.

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— Weizhen Tan

The 10-year US Treasury yield exceeds 4% for the first time since 2010

CNBC Pro: Asset manager reveals what’s next for stocks and shares how he’s trading the market

CNBC Pro Talks: Asset manager Neil Veitch on the best options — and stocks to avoid — as volatility persists

Neil Veitch, chief investment officer at Edinburgh-based SVM Asset Management, says he expects the macroeconomic outlook to remain “pretty tough” for the rest of the year.

speaking to CNBC Professional Talks Last week, Veitch named the key drivers that could help the stock market become “more constructive” and shared his thoughts on growth versus value.

CNBC subscribers can read more here.

—Xavier Ong

Earnings questions, potential recession means more sales could be to come

The Dow Jones and S&P 500 have dropped for six days in a row, with many of them seeing broad selling typical of so-called “washout” days.

Sometimes that can be a contrarian buying signal on Wall Street, but many investment professionals are skeptical that the selling is over. One reason is that earnings expectations for next year still show strong growth, which would be unlikely in a recession.

“We know that if we start to see a turnaround in two-year yields … and if we start to see a turnaround in the dollar, that gives us the ability to recover from these extreme oversold conditions,” said Andrew Smith, director of investments. strategic officer of Delos Capital Advisors in Dallas. “But I’m having a hard time reconciling in my mind that the earnings story will be as good as we hope.”

Also, dramatic moves in the bond and currency markets mean “something broke” and it may be wise to wait for that information to come to light, Smith said.

On the positive side, Smith pointed to a strong job market and signs of continued travel spending as a sign that the US economy can avoid a major recession.

—Jesse Libra

Futures open higher

Stock futures rose slightly after trading began at 6 pm Dow futures were up more than 60 points at one point, though those gains have since tapered off.

Nasdaq 100 futures had the largest initial jump of the three, suggesting the tech may continue to outperform on Wednesday.

—Jesse Libra

S&P 500 breaks June lows on Tuesday

Although Tuesday’s closing levels showed relatively modest daily moves, the S&P 500 fell below its previous intraday low for the year during the session. That move was seen by many as confirmation that stocks’ summer rally has failed.

The S&P 500 is now 24.3% below its all-time high, and the Dow is also in bear market territory, down about 21.2%. The Nasdaq Composite, whose fall dates back to last November, is 33.2% below its peak.

The next key metric for investors in the coming days could come from the bond market, where the 10-year Treasury yield has risen to just below the 4% level.

—Jesse Libra, Christopher Hayes

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