Stock Futures Signaled A Lower Open On Wall Street

Stock Futures Signaled A Lower Open On Wall Street

Market experts also attributed the selloff, including the overnight slide in S&P 500 futures, to the violent unwind of a trade betting on volatility in U.S. stocks staying low as the CBOE Volatility index, known as the VIX, notched its biggest one-day jump on Monday in over two years.

KEEPING SCORE: The Standard & Poor's 500, the benchmark for many index funds, gained 37 points, or 1.4 per cent, to 2,656 as of 1:40 p.m.

The broader S&P 500 also tanked lower - finishing at 2,581- down around 100 points, or 3.75%. The Nasdaq composite advanced 1.6 percent to close at 6,981.96. Last week, the Dow and S&P 500 declined about 5.2% each, as the Dow posted two 1,000-point drops, while the Nasdaq fell 5.1%.

However, financial service company Societe Generale remains cautious for 2018 as extreme positioning, tapering of central bank liquidity and underestimated risks of inflation repricing may continue to exert pressure on risk assets. There was little reaction to the rise to a 4-year high in 10-year Treasury yields on Monday, but I don't think this means investors weren't paying attention to the news.

While the markets were repeatedly marching though record high territory over the past year, even mediocre companies benefited, analysts said.

On Wednesday, traders are expected to respond to new data on inflation when the Consumer Price Index is reported. The downfall in stocks was brought on by rising bond yields and concerns regarding price growth, as US interest rates are making their way back to levels seen before the financial crisis.

Investors will watch U.S. inflation and retail sales figures on Wednesday particularly closely as they review monthly reports from the U.S. Department of Labor and the National Retail Federation. Chipmaker Applied Materials climbed $1.42, or 3 percent, to $49.50. Brent crude, used to price global oils, lost 20 cents to $62.59 a barrel in London.

Over three-fifths of the S&P 500 companies have reported their earnings, with just about 78 percent beating profit expectations, according to data. On Monday General Motors picked up 57 cents, or 1.4 per cent, to $42.04 and Netflix climbed $5.40, or 2.2 per cent, to $254.87.

Restaurant Brands International, the owner of Burger King and Tim Hortons, jumped $3.80, or 6.7 per cent, to $60.31 after a strong fourth-quarter report, and McDonald's gained $3.24, or 2 per cent, to $164.04. Japan's Nikkei was closed Monday, but other indexes in Asia were holding their own. The futures on gold rose by 0.81% to 1,326.30 United States dollars per ounce.

Gold rose $10.70 to $1,326.40 an ounce. Hong Kong's Hang Seng Index rose 1.48% in early trade.

Advancing issues outnumbered declining ones on the NYSE by a 1.04-to-1 ratio; on Nasdaq, a 1.14-to-1 ratio favored advancers.

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