Equity futures contracts are hinting at a significant drop in the opening for major US indices today, Thursday, following a similar trend from Wednesday's market performance. The Dow Industrial Average is projected to shed 171 points at the opening bell, while the S&P index is anticipated to decline by 35 points. The NASDAQ index is also bracing for a substantial fall with an expected drop of 173 points.
Yesterday's market performance witnessed all major indices closing near their lowest levels. The NASDAQ led this downturn, followed by the S&P and Dow Industrial Average. Specifically, the Dow fell by 76.85 points or 0.22%, the S&P index decreased by 41.73 points or 0.94%, and the NASDAQ index dropped by an impactful 209.06 points, amounting to a 1.53% decline.
In contrast to the market downturn, US interest rates are showing signs of increase. The two-year yield rose by 4.3 basis points to reach 5.16%, even testing the 5.20% mark with a high yield of 5.202% today. Concurrently, the ten-year yield is probing for a .5% increase, attaining a high yield of 4.49%. At present, it stands at 4.47%, up by 12.3 basis points for the day, marking its highest level since October 2007.
On the economic front, reports on US existing home sales and the leading index for August are due at 10 AM today. Predictions suggest that existing home sales will be around 4.10M, a slight increase from last month's figure of 4.07 M. However, the leading index is projected to show a decline of -0.5%, compared to last month's -0.4%. Notably, this economic indicator has not shown a monthly increase since March 2022.
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