The wary start to the new year continues.
Global stocks and bonds retreated further Wednesday, a day after the Nasdaq Composite fell more than 1%. The tech-led pullback marks a sharp contrast from the end-of-year market rally, as investors bet the Federal Reserve would soon begin cutting interest rates.
Futures markets show traders still reckon the cuts are likely to start as soon as March. Meantime, investors will eye fresh data for hints on whether that could change. Key releases Wednesday include data on job openings and the manufacturing sector.
Stock futures retreated slightly. Contracts tied to the tech-focused Nasdaq-100 led the declines.
Benchmark Treasury yields headed back toward 4%. The 10-year yield, which settled Tuesday at 3.944%, is on pace to rise for a fourth consecutive session.
Oil prices declined, despite continued concerns about instability in the Middle East. Brent crude fell below $76 a barrel.
Overseas stocks slipped. Hong Kong’s Hang Seng Index and South Korea’s Kospi both fell, while Japanese markets remained closed for a holiday. The Stoxx Europe 600 edged lower.
Bitcoin bucked the downbeat trend, holding above $45,000.
Up ahead: The Institute for Supply Management’s manufacturing index is due at 10 a.m. ET, alongside data on job openings. Minutes from the Fed’s December meeting will be out at 2 p.m.
