- In Asia on Wednesday, equities recovered from early losses as investors assessed a dramatic selloff in technology sectors and growing concerns that Fed tightening may push the US into recession. Dollar and Treasury yields remained stable.
- China, South Korea, and Australia's stock markets all gained, but Japan's varied. Stocks plummeted overnight, with the Nasdaq 100 losing more than 2% after Snap issued a profit warning, which hit companies that rely on digital advertising hard. Gains in utilities and consumer staples helped the S&P 500 recover from its session low.
- Chinese equities are still in the spotlight, as the market believes the country's stringent Covid policy trumps broad growth-supporting initiatives. In the latest effort to bolster the battered economy, the country's central bank and banking regulator urged lenders to increase lending.
- Treasuries hung on to their gains after a flight to safety pushed rates lower, and traders lowered expectations for Fed rate rises. Money-market traders expect the central bank to raise rates by approximately 135 bps during the next three policy meetings, down from roughly 141 bps at Monday's closing.
