Wall Street rose sharply on Tuesday even as Hong Kong’s Hang Seng index fell more than 9% after Beijing. Avoiding major cost-cutting measures while China’s economy is shrinking.
S&P 500 futures rose 0.4% before the bell, while Dow Jones Industrial Average futures rose 0.2%.
The rise in bond yields, which sent stocks higher on Monday, stabilized early Tuesday and oil prices fell for the fifth straight day.
US stocks are hovering near reserve levels due to interest rates finally I’m back down now that the Federal Reserve has expanded its focus to include keeping the economy running smoothly instead of being passive fight inflation.
When Treasury bonds, which are seen as the safest money, are paying interest, investors stay. don’t like to pay high prices for stocks and other risky investments.
For investors, it’s hard to ignore that the 10-year Treasury is paying a yield of 4.03%, up from 3.62% three weeks ago.
The two-year Treasury yield, which closely tracks the Fed’s expectations, fell to 3.98% on Tuesday after jumping to 3.99% the previous day.
Treasury yields may also rise due to higher oil prices in the near future. Stock prices have been rising because of fear the escalation of conflict in the Middle East finally disrupting the flow of oil around the world.
Benchmark US crude fell $1.62 to $75.52. It gained 3.7% on Monday and rose nearly 11% in October. Brent crude, the international benchmark, shed $1.68 to $79.25 a barrel. It also jumped 3.7% on Monday.
As earnings season begins, PepsiCo shares fell 1% after it reported annual earnings. US consumers continue to do so go back buying snacks and drinks after years of price increases.
DocuSign jumped 5.6% after S&P Dow Jones Indices announced that the electronic document signing company will join the S&P MidCap 400. DocuSign will replace MDU Resources, which will be shaken up from the S&P SmallCap 600 after announcing last week that it is running its construction projects. Everus Construction Group Company.
In Asia, the Hang Seng index lost 9.4% to close at 20,926.79. Technology and sectors related to China caused the decline.
Shares rose 10% in Shanghai on Tuesday but retreated slightly details of financial incentives plans from officials in Beijing have not met investors’ expectations.
The Shanghai Composite index closed 4.6% higher, at 3,489.78. In Shenzhen, Japan’s smaller stock market, the main index gained 8.9%.
Hong Kong shares gained well last week as China’s stock markets closed for the weekend and reopened on Tuesday. The progress was boosted by recent announcements of Beijing’s plans to support the economy and financial markets.
“The Chinese market rally has hit the wall, leaving investors in a daze. The reopening of the one-week holiday had no time to gather steam before it ran out, and the previously excited bulls are licking their wounds,” SPI Asset Management’s Stephen Innes said in a statement.
Shares in food delivery company Meituan fell 15.5% while e-commerce giant Alibaba sank 8.8%. Its partner JD.com fell 11.9%.
In other Asian trades, Tokyo’s Nikkei 225 index lost 1% to 38,937.54. while the dollar fell to 147.79 Japanese yen from 148.18 yen. A strong yen tends to depress share prices because it hurts the profits of heavy goods producers.
The Kospi in Seoul fell 0.6% to 2,594.36. Australia’s S&P/ASX 200 fell 0.4% to 8,176.90.
In early European trading, Germany’s DAX lost 0.2%, Paris’ CAC 40 lost 0.6% and London’s FTSE 100 fell 1.1%.
The euro rose to $1.0979 from $1.0977.
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AP Business Correspondent Zen Soo in Hong Kong contributed.
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