PremiumStocks slid along with US equity futures as disappointing results from tech giants soured sentiment and marred a tentative recovery in equities. Treasuries retreated, with benchmark yields topping 4%.
Stocks slid along with US equity futures as disappointing results from tech giants soured sentiment and marred a tentative recovery in equities. Treasuries retreated, with benchmark yields topping 4%.
Contracts on the tech-heavy Nasdaq 100 were almost 1% lower on Amazon.com Inc.’s plunge after hours as its sales forecast trailed estimates. S&P 500 futures and the Stoxx Europe 600 pared losses to trade down 5%.
“We are starting to see some companies’ bleeding in terms of forecasts and unfortunately we’re starting to see the big caps in the market disappointing," Banque Syz CIO Charles-Henry Monchau said in an interview with Bloomberg TV. “Earnings for us is still a headwind."
Despite the downturn, the S&P 500 is heading for a second week of gains for the first time since August.
The 10-year benchmark Treasury yield surpassed 4% as a rally in government bonds began to fizzle. Government bonds this week were buoyed by hopes that policymakers are preparing a downshift in aggressive rate hikes amid softer economic data.
The ECB delivered a second straight 75 basis-point hike on Thursday but dropped a prior reference to rate increases continuing for “several meetings," an outcome that was considered dovish.
The Bank of Japan held its negative rate Friday, 10-year yield cap and asset purchases at the end of a two-day policy meeting, in line with the view of 49 economists surveyed by Bloomberg.
Economists still expect the Federal Reserve to hike by three-quarters of a percentage point for the fourth time in a row next week -- and tighter policy is starting to crimp corporate earnings.
Amazon shares plunged almost 20% in extended trading before paring losses, after the tech giant projected sluggish sales for the holiday quarter. Apple Inc. was steady in post-market trading after posting weaker-than-expected iPhone and services sales for its latest quarter.
Chinese assets also remained in focus, with foreign investors dumping a record amount of mainland China stocks this week and sending Hong Kong equities to a 13-year low. President Xi Jinping’s tightening grip on power hasn’t had the same impact domestically, with mainland investors hunting for bargains in Hong Kong.
Oil pared its weekly gain as investors shied away from risky assets on a dimming outlook for China and the wider global economy. West Texas Intermediate traded near $88 a barrel.
Key events this week:
Some of the main moves in markets:
Stocks
Currencies
Cryptocurrencies
Bonds
Commodities
This story has been published from a wire agency feed without modifications to the text.