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Markets have struggled to maintain the momentum of a brief rally
early last week as a clutch of recent data continues to point to
more policy tightening by the U.S. Federal Reserve that could
tip the economy into a recession.
Most rate-sensitive growth stocks such as Microsoft Corp,
Twitter Inc, Amazon.com, Apple Inc, and Tesla Inc were down
between 0.7% and 1.3% in premarket trading.
The yield on the benchmark 10-year U.S. Treasury note was up on
Tuesday, hitting a day's high of 4.006%.
With recent economic indicators signaling persistent inflation
going forward, money markets are pricing in a 92% chance of
another 75-basis-point hike at the Fed's meeting in November.
A consumer prices report due on Thursday will provide some
clarity on inflation, while minutes from the Fed's September
meeting is also expected later in the week.
Belarus said on Tuesday that its forces had grouped with Russian
troops on its borders as a defensive measure, further
aggravating a spiraling war.
Shanghai and other big Chinese cities have ramped up COVID-19
testing amid a rise in infections, with some local authorities
hastily closing schools, entertainment venues and tourist spots.
The CBOE volatility index, also known as Wall Street's fear
gauge, rose to 33.57 points, up for a fourth straight session
and inching closer to near two-weeks high.
At 6:09 a.m. ET, Dow e-minis were down 269 points, or 0.92%, S&P
500 e-minis were down 36.75 points, or 1.01%, and Nasdaq 100
e-minis were down 111.75 points, or 1.02%.
(Reporting by Ankika Biswas; Editing by Anil D'Silva)
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