(Bloomberg) -- U.S. equity-index futures saw a bit of respite in Asia after a rout in the U.S. sent the S&P 500 Index to a more than one-year low.
March e-mini contracts on the S&P 500 rose as much as 0.5 percent after the underlying gauge dropped 2.1 percent to its lowest level since October 2017 on Monday. Concerns ranging from slowing global growth to Federal Reserve tightening were among the culprits. Futures on the Nasdaq 100 Index and Dow Jones Industrial Average advanced as much as 0.6 percent and 0.5 percent, respectively.
To Michael McCarthy, the chief market strategist at CMC Markets in Sydney, that looks like “a little bit of a dead-cat bounce” following a 4 percent plunge in the S&P 500 over the past two days. For Jun Bei Liu, a fund manager at Tribeca Investment Partners, the losses have gone too far, and with investors holding off adding new positions ahead of the holidays, “markets can move in exaggerated fashion,” she said.
Key Insights
- The S&P 500 dropped to a 14-month low as Wall Street keeps watch on a partially inverted yield curve and weakening global economic data. The Federal Reserve is likely to hike rates on Wednesday, even as President Donald Trump intensifies his attacks on the central bank.
- Tensions between the U.S. and China are still lingering as negotiations progress to end the trade spat between the world’s two largest economies. While China’s openness to cutting tariffs on U.S. cars and buying soybeans is feeding optimism the dispute will be resolved, investors remain cautious a deal will be done by the March 1 deadline.
- Crude settled below $50 a barrel in New York on Monday, the first time in more than a year. The U.S. Energy Department and data provider Genscape Inc. were among those predicting higher American supplies, just as uncertainties persist over the effectiveness of curbs by the OPEC+ coalition.
Get More
- Nothing Is Working as Bulls Run Low on Saviors in Stock Sell-Off
- Charts Take Ominous Turn With S&P 500 February Floor Under Siege
- China’s U.S. Treasuries Holdings Tumble to Lowest Since May 2017
- Fed Rate Hikes Are Extremely Rare When Stocks Are This Beaten Up
Market Reaction
- March contracts on S&P 500 Index rise 0.5 percent as of 10:52 a.m. in Hong Kong; the underlying gauge is on track to post its biggest December slide since 1931
- Nasdaq 100 Index futures climb 0.5 percent
- Dow Jones Industrial Average futures add 0.4 percent
