U.S. stock futures edged down ahead of a wave of earnings reports from major technology and blue-chip firms as investors contended with fears about slowing growth. 

Futures tied to the S&P 500 shed 0.4%. Dow Jones Industrial Average Futures declined 0.4% and technology-heavy Nasdaq-100 futures lost 0.5%.

Microsoft, Google-parent Alphabet, GOOG 3.04% General Motors, Visa and Mondelez International MDLZ 1.11% are set to report earnings after markets close. 

United Parcel Service rose 2.3% ahead of the market open after reporting a rise in quarterly earnings. Shares of PepsiCo added 0.4% premarket after the beverage giant topped profit estimates for the recent quarter. 3M rose 0.9% after reporting better-than-expected first-quarter sales.

General Electric fell more than 3% after warning that supply chain disruptions would pressure its business this year. Raytheon fell 0.9% after reporting sales that missed analysts’ forecasts.

Stocks on Wall Street closed higher on Monday, led by tech stocks, after Twitter agreed to be taken private by Elon Musk. The Nasdaq Composite Index rose 1.3% while the S&P 500 added 0.6%.

Fears about a resurgence of Covid-19 cases in China, and strict lockdowns imposed to fight the outbreak, have heightened investors’ concerns about the global economy and prompted choppy trading in recent sessions. Soaring inflation is weighing on companies and consumers while the Federal Reserve’s indications that it will quickly tighten monetary policy threatens to drag on growth. 

“We had a beautiful scenario over the last 18 months: Growth was accelerating and bond yields were falling—the perfect combination for risk assets,” said Hani Redha, a portfolio manager at PineBridge Investments. “Now we have the complete opposite.”

The yield on the 10-Year U.S. Treasury note declined to 2.796% from 2.825% on Monday. The yield on the benchmark note remains close to its highest level since 2018 as investors have sold bonds in anticipation of higher interest rates. Bond yields rise as prices fall. 

Assets considered havens in times of trouble, such as Treasury bonds, are being pressured by inflation and expectations for tighter central-bank policy along with stocks, complicating matters for investors seeking shelter during recent volatility. Gold, another haven, edged up 0.4% on Tuesday but prices remain close to its lowest level since February.

“Inflation really is enemy number one for financial markets. It is painful for risk assets and painful for your safety assets,” Mr. Redha said. “There are very few places to hide.”

Brent crude futures edged up 0.3% to $102.55 a barrel. The international oil benchmark fell below the $100 a barrel level Monday before rebounding. U.S. benchmark oil prices, known as West Texas Intermediate, rose 0.2% to $98.78 a barrel Tuesday.

Traders worked on the floor of the New York Stock Exchange on Monday.

Photo: Spencer Platt/Getty Images

Investors were awaiting data on durable goods, home sales and consumer confidence. Orders for durable goods—consumer products designed to last for more than three years—are expected to have rebounded in March following a weak February. 

Overseas, the Stoxx Europe 600 rose 0.8%. 

UBS Group rose 2.2% after reporting stronger-than-expected quarterly earnings. HSBC shares in London fell almost 3% after reporting a drop in quarterly profits

In mainland China, the Shanghai Composite Index fell 1.4%, lower for a second consecutive day, as investors continued to worry about the threat of new Covid-19 lockdowns. 

The People’s Bank of China vowed to step up support for the economy Tuesday in an attempt to calm the jitters, but the move only had a temporary effect on local markets.

“I don’t see any catalyst for price appreciation until we get some tangible, meaningful moves on the policy front,” said John Woods, Asia Pacific chief investment officer at Credit Suisse, referring to Chinese stocks. 

Elsewhere in Asia, Tokyo’s Nikkei 225 index rose 0.4%, while South Korea’s Kospi edged up 0.4%. Hong Kong’s Hang Seng Index rose 0.3%.

—Rebecca Feng contributed to this article.

Write to Will Horner at william.horner@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Source: WSJ

You May Also Like

Sixth officer involved in Tyre Nichols death relieved of duty

Memphis Police said Preston Hemphill, who was hired in 2018, was relieved…

South African police arrest teacher accused of preying on boys at schools in Scotland

South African police arrest teacher, 83, accused of being paedophile dubbed ‘Jimmy…

Paul Burrell, 64, confirms ‘lifechanging’ cancer diagnosis

‘It’s robbing me of my testosterone’: Paul Burrell, 64, confirms ‘lifechanging’ prostate…

Paul Heckingbottom's Sheffield United update on Sander Berge amid Chelsea and Newcastle interest

Chelsea, Newcastle, Fulham and Liverpool have been linked with a move for…

In the West, pressure to count water lost to evaporation

WASHINGTON – Exposed to the beating sun and hot dry air, more…

19-Year-Old Florida Man Arrested On 30-Counts Of Child Porn Of Girls Ages 2 To 13

19-year-old Wesley Faircloth of DeLand A 19-year-old Florida man is in custody…

Gainesville partners with nonprofit to boost bee populations

By Silas Morgan January 30, 2023 Heard It…

Meghan Trainor announces pregnancy with husband Daryl Sabara

Trainor was on ‘TODAY’ to promote her upcoming book, but found a…

Hundreds of cannabis plants found at old Yorkshire bakery as man 'claiming to be 15' arrested

Two Albanian nationals arrested – a man aged 32 and a second…

Kind and gentle York man murdered by men he met in off-licence

Curtis Turpin and Adam Hudson have today been jailed for the murder…

Warm temperatures with higher humidity Monday

After a warm Sunday it stays mild overnight as low temperatures Monday…

Florida Judge Dismisses Martha’s Vineyard Migrant Records Case

Florida Gov. Ron DeSantis A Leon County circuit judge has dismissed a…