Futures mixed as frayed nerves rekindle bond bid

Futures mixed as frayed nerves rekindle bond bid

Stocks















Bloomberg

US equity futures were mixed while European stocks fall as investors assessed shaky company earnings and the prospect of higher US borrowing costs. Bond yields dropped a second day.

The Stoxx Europe 600 Index touched the lowest level in a month weighed by miners, travel and leisure and automakers. Nasdaq 100 contracts underperformed after the tech-heavy gauge entered a correction. Those for the S&P 500 pared an earlier loss to trade little changed.

Investors are grappling with the prospect of reduced stimulus in the Fed’s effort to quell high inflation. Company developments also soured the mood, with Netflix Inc. plunging on a disappointing subscriber outlook. A report that Washington is allowing some Baltic states to send US-made weapons to Ukraine stoked concerns about a standoff with Russia.

Demand for havens pushed the 10-year US Treasury yield below 1.80%. Oil was lower on a surprise climb in US crude stockpiles. The White House also said it can work to accelerate the release of strategic reserves.

Receding pandemic-era stimulus is whipsawing a range of assets. Markets face a one-two punch of Fed rate hikes starting as soon as March and the