Source : Reuters
- Pepsico down after annual sales growth forecast cut
- U.S.-listed shares of Chinese cos fall
- Futures up: Dow 0.14%, S&P 500 0.4%, Nasdaq 0.44%
U.S. stock index futures bounced back on Tuesday from a selloff in the previous session, as investors turned their focus on key inflation data and third-quarter earnings later this week for fresh insights into the Federal Reserve’s interest rate path.
All three major indexes closed down around 1% on Monday, as a jump in Treasury yields, concerns about the impact of rising conflict in the Middle East and a repricing of U.S. rate expectation pressured equities
U.S. S&P 500 E-minis were up 22.75 points, or 0.4%, Nasdaq 100 E-minis were up 88 points, or 0.44%, Dow E-minis were up 61 points, or 0.14%.
U.S. Treasury yields retreated slightly from Monday’s highs, though the yield on the benchmark 10-year note remained above 4% as strong economic data last week prompted investors to trim bets on the scope of the Federal Reserve interest rate cuts over the rest of this year.
Traders have priced in a nearly 89% chance of a 25 basis point interest rate cut from the Fed at its November meeting. Bets on no rate change at the meeting also crept up slightly, according to CME FedWatch.
“We did see strong sell off yesterday so it’s not unnatural to see a slight bounce, particularly as there’s a vacuum of fresh data today,” Fiona Cincotta, senior market analyst at City Index said.
“We’re in a lull ahead of the busy end of the week. If we do get a hotter-than-expected inflation read, that might unnerve the markets quite quickly”.
The CBOE Volatility index (.VIX)
, opens new tab, Wall Street’s “fear gauge,” retreated from Monday’s highs but was still trading around one-month high at 22.04
Meanwhile, PepsiCo (PEP.O), opens new tab lost about 1% after the packaged food giant posted a surprise drop in third-quarter revenue and cut its forecast for annual sales growth.
