- U.S. equity-index futures declined due to investors' concerns over the likelihood that interest rates would continue to rise and the potential for escalating geopolitical tensions. Due to the haven effect, the dollar recovered.
As US traders returned from vacation, contracts on the S&P 500 and NASDAQ 100 indexes fell by at least 0.7% each. Chinese technology shares fell in early New York trading as an e-commerce price battle heated up. As Bank of America and JPMorgan Chase predicted that the 2023 rise will come to an end, European stocks gradually declined. Treasury bonds slid past the bend.
Global stock markets' early-year bounce has faded, and the dollar has started to rise again as central bankers reiterated their commitment to fighting inflation. Due to this and a persistent price trend, traders have been forced to account for an additional 75 basis point rate increase by the Federal Reserve by July. They also reduced their bets on the first US rate cut: swaps now anticipate a 20 basis-point decrease by year's end, down from an earlier 50 basis-point shift.