Global equity benchmarks and futures on key indexes fell, suggesting U.S. markets could come under fresh pressure on Tuesday after starting the week with a roller-coaster trading session.
Market volatility has picked up in recent sessions, as investors have grown anxious about how rapidly the Federal Reserve will act to combat inflation by raising interest rates and shrinking its balance sheet.
U.S. markets whipsawed Monday, with the Nasdaq Composite declining as much as 4.9% before rallying to close 0.6% higher. The S&P 500 and Dow Jones Industrial Average also staged similar comebacks.
By midmorning Tuesday in Hong Kong, futures tied to the Dow, S&P 500 and Nasdaq-100 stood 0.6% to 1.2% lower, while regional equity indexes were broadly lower.
Japan’s Nikkei 225, Australia’s S&P/ASX 200 and South Korea’s Kospi Composite all lost 2% or more. Among the largest listed companies, major decliners included the technology and telecoms giant
which fell 3.7%, and
the electronics and entertainment conglomerate, which dropped 2.5%.
Hong Kong’s Hang Seng Index shed 1.5%, with the banks
both losing roughly 3%. The CSI 300 index of large stocks listed in mainland China pulled back 0.5%.
The yield on the benchmark 10-year U.S. Treasury note rose 0.027 percentage point to 1.762%, according to Tradeweb.
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